Healthcare Costs That Catch Retirees Off Guard

Most people prepare for the big healthcare costs in retirement: Medicare premiums, prescription drug coverage, and maybe extended care insurance. That’s a great start.

But some costs can sneak up later. Fidelity estimated lifetime healthcare spending for 2025 at around $330,000 per couple, excluding extended care. What that number often misses are expenses that fall outside most retirement budgets. Here are three worth knowing about.¹

Prescription Drugs Not Covered

A new federal rule caps Medicare Part D out-of-pocket costs for covered medications at $2,000 per year. The keyword is “covered.”¹

That cap only applies to drugs on your prescription drug list. With nearly 500 Medicare drug options available, the lists vary widely. Consider a medication that runs about $9,000 per month. If your coverage includes it, you pay no more than $2,000 for the year. If it’s not on your list, you might be responsible for the full amount.¹

It pays to review your prescription drug list every year, especially for high-cost medications. Insurers and drug lists change annually, so what was covered last year may not be this year.¹

The Hidden Cost of Living Remotely

Moving to a quieter, more scenic spot is a wonderful retirement choice for many people. Just make sure you’ve thought through what healthcare access looks like down the road.

People in places like rural Alaska have always factored in the distance from hospitals. But many retirees who move to peaceful areas early in retirement don’t think that far ahead.¹

Concierge Medicine

In some areas, concierge medicine may be an option.

Concierge medicine is a healthcare model where patients pay a monthly or annual membership fee directly to their physician in exchange for enhanced, personalized care. Unlike traditional practices, concierge doctors limit their patients to a few hundred, giving members same-day or next-day appointments, longer office visits, and direct access to their doctor by phone, text, or email.

The model appeals to patients who want a closer relationship with their physician and faster access to care.¹

Preparing for What’s Next

When reviewing your healthcare choices in retirement, it can be best to ask a lot of “what if” questions. We’re always here for that conversation.

1. The Wall Street Journal, June 8, 2025.

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