Appeal a Medicare Surcharge

THE NEW WORLD OF RETIREMENT BY SANDRA BLOCK

- Sandra Block

IN my years as a writer and editor for Kiplinger Personal Finance, I frequently advised readers to prepare for substantial out-of-pocket health care costs after they retire.

Fidelity Investments estimates that a 65-year-old who retired in 2025 will spend an average $172,500 in health care and medical expenses in retirement. In a recent column, I discussed my out-of-pocket dental costs, which elicited a lot of interesting feedback from readers who have successfully lowered their dental expenses.

But while I was prepared to pay for expenses that aren’t covered by Medicare, I was taken aback by the cost of Medicare itself—specifically, Medicare Part B, which covers doctor’s visits and other outpatient services. While Part A, which covers hospitalization, is free to most beneficiaries, retirees pay a monthly premium for Part B. I also pay for Part D, which covers prescription drugs.