Medicare provides health insurance for those over 65 but it won’t cover everything. From 1998 to 2003, the estimated out-of-pocket medical cost for Medicare beneficiaries has risen from an average of $2,300 per year to $3,300. These figures include deductibles, co-payments, and money spent on prescription drugs but not outlays for private health insurance or long-term custodial care.
What’s more, for the 25 percent of Medicare beneficiaries with the highest out-of-pocket costs, the average is over $8,700 per year. For the top 10 percent, in terms of out-of-pocket costs, the average is over $13,000.
The bottom line is that medical care can be expensive, even if you’re on Medicare. Proposed legislation may alter the Medicare program in 2003 but it’s far from certain what, if any, changes will be approved. Therefore, you might want to look into buying a Medicare supplement (“Medigap”) insurance policy to cut your exposure to steep medical costs.
