Will Enrolling in Medicare Impact Your Health Care Costs?
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The rising cost of health care coverage has many retirement-aged individuals wondering how they’ll pay for protection once they enroll in Medicare.
A recent Mutual of Omaha survey of consumers aged 60 and above who had yet to enroll in Medicare reveals most respondents are pessimistic about future health care expenses.
Over half (56%) of those who plan to enroll in 2025 or earlier say they expect costs to go up compared to their preretirement costs, and 22% expect costs to stay the same. Those planning to enroll in 2026 or later are slightly more optimistic, with 47% expecting an increase in costs and 23% predicting costs will stay the same.
A recent prediction from one independent source for health policy research and polling shows Medicare customers have reason to be concerned about rising costs.
KFF projects the average annual growth in Medicare per capita spending to be 5.4% between 2020 and 2030, on par with the 5.3% growth rate in private health insurance per capita spending over those same years.*
Costs for Medicare coverage vary greatly, depending on the type of plan purchased as well as any additional coverage, such as prescription drug, dental, or vision coverage a recipient may choose to add.
Mutual of Omaha Senior Vice President of Medicare Supplemental Solutions Jeff Ganow advises Medicare customers to take time to research and understand the different parts of Medicare and then decide which provides the right coverage at the best price for them.
“Medicare customers have many options available to them in a wide variety of price ranges,” Ganow said. “With costs projected to continue to go up, it’s critical for those enrolling or considering a change in coverage to find a plan that fits both their needs and their budget.”
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