Introduction to Medicare

Although many folks project decreased living expenses when planning for retirement, the cost of healthcare is likely to be the exception. Healthcare costs have significantly outpaced the overall inflation rate for years, and recent studies show retiree medical bills have increased about 6% per year for the past decade—even for those on Medicare. This tutorial is an introduction to Medicare and Medicare supplement ("Medigap") insurance—two types of healthcare insurance on which many of us will rely as we enter the retirement years.

It’s important to understand at the outset that Medicare is far from a total solution to a retiree’s healthcare needs. A typical couple entering retirement at age 65 can expect to pay well over $200,000 out of pocket for care of one sort or another throughout the rest of their lives.