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How To Avoid Costly Healthcare Mistakes in Retirement

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Retirement is supposed to be about soaking up the good life, such as sleeping in, finally having time for hobbies, taking advantage of all the Lehigh Valley has to offer, and maybe even moving somewhere with better weather and lower property taxes. But there are less glamorous things, too. For example, you need to think about your finances all the time. Because for many, their financial situation changes (sometimes for better, sometimes for worse).

But there’s one thing that doesn’t clock out just because work does: healthcare costs. And if there’s one thing that can put a damper on the “golden years,” it’s unexpected medical bills. It’s not usually something that comes to mind for those in their retirement years, right?

Seriously, this is something you need to be realistic about. Healthcare isn’t cheap, and once employer-provided insurance is gone, those costs can add up fast. Medicare helps, but it’s not a free pass to unlimited coverage, although a lot of people tend to think so.

Planning ahead means fewer financial surprises and more time focusing on the fun part of retirement because nobody dreams of spending their golden years buried under medical bills.

Medicare Isn’t the same everywhere

Medicare is a must-have after retirement, but it’s not a one-size-fits-all setup. For starters, original Medicare covers doctor visits and hospital stays, but it skips out on things like dental, vision, and long-term care. That means adding extra coverage through Medicare Advantage plans, Medigap, or just bracing for some out-of-pocket costs.

But that’s not all—here’s where people get things a bit mixed up. Medicare plans aren’t the same in every state. In fact, some states offer a wide range of plans with better coverage options, while others have fewer choices. Of course, if you move to another state you’ll be covered, but there are often some minor differences.

Even premiums and out-of-pocket expenses can shift depending on location. So, if you’re thinking about moving, just be sure to look into this first not make the mistakes other retirees have made.

Out-of-pocket costs add up fast

Something else you might find surprising: even with Medicare, some things still hit the wallet. You have to keep in mind that there are copays, deductibles, prescriptions, and those little expenses that don’t seem like a big deal at first but can really pile up over time. And then there’s long-term care, which Medicare doesn’t cover at all. So, if assisted living or home care ever becomes necessary, that’s a separate expense that can get very expensive.

Healthcare costs are not something anyone wants to think about, hoping that we will be healthy and live forever. But setting aside money specifically for healthcare costs is one of the smartest things to do in retirement. Some people use a health savings account before they retire, while others look into supplemental insurance. Choosing a viable option is absolutely necessary, but avoid getting into a full-blown panic.

Not every retirement destination has great healthcare

Moving somewhere new for retirement is exciting, right? There are lower taxes, better weather, and maybe even a neighborhood where people drive golf carts instead of cars (They’re everywhere in Florida). But before packing up and heading for paradise, it’s smart to check how the local healthcare situation stacks up.

Some places have top-rated hospitals, plenty of specialists, and easy access to care. Others? Not so much. Sure, a big city might have great healthcare, but that little rural town may not have the best care and may be quite distant from hospitals and specialists. Check with a real estate agent, medical professional, insurer, “Doctor” Google, or friends or family in that area so you can intelligently prepare for anticipated and unanticipated healthcare needs.

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