Home General Healthcare Coverage and Benefits for Retirees: Are They Enough?

Healthcare Coverage and Benefits for Retirees: Are They Enough?

Reading Time: 3 minutes

Post-retirement life might seem all exciting and liberating at first. But the process isn’t as straightforward and easy to navigate. Especially where there are things like retirement healthcare coverage to consider.

You are retiring at an old age, and as a result, you will be prone to different health-related issues. Even if you live in retirement communities, healthcare expenses are the highest costs you will incur.

This is why many retirees intend to work even after retirement to cover healthcare expenses. But does this mean that the healthcare coverage for retirees is not enough? Do the benefits not cover healthcare treatments for retired seniors? In this article we will explore these questions and find an answer.

How much you might incur for healthcare after retirement

A report by HealthView Services states that a 65-year-old couple retiring in 2019 was expected to spend above $387,000 on healthcare costs.

And this cost is not going to wear out. In the future, the expenses will increase. Even after excluding Medicare, supplemental insurance, and other private expenses, it will rise.

Here is an estimation of annual healthcare costs in the next 20 years.

Healthcare coverage and benefits options for retirees

As a retiree, you have quite a few options in the market for healthcare coverage. Many insurance providers give seniors access to different healthcare plans. You can easily buy those insurance plans for yourself.

You may also have retiree health coverage. It is a unique benefit for retirees that covers healthcare expenses. Employers, unions, or trusts offer this benefit to retired employees. Yet, if you have retiree health coverage, there are some limitations to healthcare benefits you can get.

What are your options for healthcare insurance plans?

If you are retiring before the age of 65, you are not eligible for retiree health coverage. In that case, you can search the market for different healthcare insurance plans.

It might seem disheartening to lose eligibility for retiree healthcare coverage. But there is still much lucrative healthcare insurance coverage in the market. These plans ensure minimal out-of-pocket costs with premium tax credits.

  • Using Medicaid plans. Medicaid is an excellent choice for seniors with a low income. It has as low as $0 premiums. And it also covers services outside Medicare.
  • Health Savings Account (HSA). As the name suggests, HSA is an account that allows you to save your earnings for healthcare coverage. Whatever amount you have for HSA, there is no tax on it. You can either use it separately or with other medical insurance plans.

Medicare and retiree health benefits

Retiree health benefits may not be enough for your healthcare expenses. In such a situation, you can also sign up for Medicare benefits. But there are specific eligibility criteria that you must fulfil.

But if you are planning for other insurance plans, there are some limitations. For instance, you will not get premium tax credits based on your income.

Both retiree health coverage and Medicare would be an excellent choice for you. You can use retiree health coverage to pay for expenses that Medicare doesn’t cover.

Are healthcare coverage and benefits for retirees enough?

Healthcare costs in the US have been rising rapidly. This ever-increasing expense requires you to plan accordingly before retiring. There are quite a few benefits like Medicaid, Medicare, and retiree health coverage for seniors. But are they enough?

These benefits are enough on paper. But the healthcare expenses are probably the highest costs you will incur. So, the benefits may not cover all of them. So, at some point, you will have to think about what other options you have.

Thus, we recommend putting more emphasis on your Health Savings Account (HSA). You can consider contributing more to saving up for healthcare coverage after retirement. The return on the savings will benefit you greatly. And if you are retiring at 65 or later, definitely consider being eligible for Medicare plans.


It is quite clear that healthcare coverage and benefits for retirees are not enough. The costs are ever-increasing. And the coverage will always have limitations to their benefits.

The best thing to do is to plan accordingly since you are retiring at an old age. Healthcare is expensive and it’s not something you want to worry about in your later years. There are enough options for you in the market. You just have to find out the ones that serve you the best.

Ian Evans is a content writer and editor at BoomersHub. He excels in creating content across different industries.

© Copyright 2014–2034 Psychreg Ltd