How To Manage Unexpected Healthcare Costs

Key Takeaways

• Enroll in Medicare Part D during open enrollment each year for prescription drug coverage, as it's not automatic and costs vary annually
• Use a Health Savings Account (HSA) as a tax-advantaged way to save for medical expenses in retirement before age 65
• Research available public support programs at federal, state, and local levels—many retirees don't know what assistance they qualify for
• Plan for coverage gaps between early retirement and age 65 by exploring Affordable Care Act marketplace options
• Budget separately for non-Medicare expenses: dental, vision, hearing aids, and long-term care, as these can represent significant out-of-pocket costs