Medicare Costs Can Take Surprising Portion of Household Budget

Medicare Costs Can Take Surprising Portion of Household Budget

Many new Medicare beneficiaries are surprised by the amount of household spending that gets gobbled up by Medicare premiums, out-of-pocket costs, and uncovered care. Those healthcare costs tend to be among the fastest - growing during a typical retirement. TSCL’s 2023 survey on the buying power of Social Security benefits found four common Medicare costs ranked among the top ten fastest-growing costs since 2000. They include prescription drugs, dental services (which are not covered by Medicare), Medicare Part B premiums, and total medical expenditures.

Results from TSCL’s Senior Survey conducted from January through May of 2023 illustrate the reality that many beneficiaries spend substantial amounts on their healthcare.

TSCL 2023 Senior Survey, January–May. 1,815 survey participants.

TSCL’s survey found that the median amount spent on healthcare for 2022 was $4,800 for the year or less. But some survey participants had considerably higher costs than the rest — about one-in-five reported spending more than $12,828 in 2022.

How are you doing in 2023? Please take our 2023 Retirement Survey and let us know!