- Medicare beneficiaries can expect to pay a share of their costs out of pocket because of program deductibles and other cost sharing.
- In 2011, Medicare covered 62 percent of the cost of health care services for Medicare beneficiaries ages 65 and older.
- Out-of-pocket spending accounted for 13 percent, and private insurance covered 15 percent.
- In 2014, a man would need $64,000 in savings and a woman would need $83,000 if each had a goal of having a 50 percent chance of having enough money saved to cover health care expenses in retirement.
- If either instead wanted a 90 percent chance of having enough savings, $116,000 would be needed for a man and $131,000 would be needed for a woman.
- For a married couple both with drug expenses at the 90th percentile throughout retirement who wanted a 90 percent chance of having enough money saved for health care expenses in retirement by age 65, needed savings are $326,000 in 2014.
Source: Employee Benefit Research Institute.
