In retirement the single biggest expense for the majority of people will be the costs of health coverage and, unfortunately, the 2025 Retiree Health Care Cost is now higher than ever.
A 65-year-old couple, both non-smokers, both retiring in 2025 and planning to live until age 85 for the female and 83 for the male should plan to incur costs of $319,000 throughout retirement for their health coverage.
Yes, that is right, just their premiums for health insurance will cost over $319,000 in total over their lifespan.
This may seem unbelievable as the financial industry continues to gaslight the public about the subject to make a buck, so here are the calculations for the 2025 Healthcare Costs in Retirement.
In 2025 the federal government, which controls Medicare, is stating that the costs for Medicare are:
- Part B – $185.00 per month per person
- Part D – $102.48 per month per person for Total Cost.
- Includes average of all Part D Plans available and the possible Deductible.
For Supplemental Plans (Medigap) coverage, as of September 2025 Plan G policies on a national average not including states that are Community Based are:
- Female: $146.35 per month per person
- Male: $160.70 per month per person.
Total healthcare costs for a 65-year-old couple for Original Medicare with a Plan G Supplemental according to the FEDERAL GOVERNMENT:
- $845.57 per month
- $10,147 annually
Future projections of the 2025 Retiree Health Care Cost Estimate by the FEDERAL GOVERNMENT:
According to the Federal Government Original Medicare will inflate by over 6.00% through at least 2033 in order for the Medicare program to remain solvent.
Medicare Part B by 2033 will grow by 6.25% on an annual average as the 2033 Part B premium is projected to be $299.80 a month per person.
The projection for Medicare Part D is slightly lower as the Inflation reduction Act caps the increase in premiums to be a maximum of 6.00% through 2029.
Please note that existing Part D Total Costs since inception have grown by over 7,25% annually since inception back in 2007.
In 2025 the story is much worse as the costs of Part D Plans grew by:
- Premiums – 13.68%
- Basic Part D Plan premiums only grew by 1.65% while the Enhanced Part D Plan premiums skyrocketed by over 20% from 2024.
- The Part D Deductible -14%
- Basic Part D Plan deductibles grew by 8.85% from 2024 while the Enhanced Part D deductible also skyrocketed by over 20%.
Supplemental Plans on a national average continue to increase in price by an average of just over 5.00%, but thankfully there are a number of these plans in every state that are much more affordable.
Conclusion to 2025 Healthcare Costs in Retirement
Regardless of what some might say in the financial industry for the majority of people when it comes to expenses they HAVE to pay in retirement health coverage will be the largest expense they will have.
You are also reading that last sentence correctly. Regardless of what your financial professional will or won’t tell you, you have to have Medicare if you don’t have any other form of health insurance past the age 65.
If you refuse to accept Medicare after the age of 65 you will be penalized financially when you do sign up as well as forfeiting your entire Social Security benefit…this is the law!
A breakdown of costs again:
- Medicare Part B – $185.00 per month person and the federal government is stating that it will grow by 6.25% annually through 2033.
- Medicare Part D – $102.48 a month per person on a national average.
- Supplemental Plan G policies – $146.35 a month per female and $160.70 per month per male.
Total monthly cost is $845.57 per couple for Original Medicare with a Supplemental Plan G policy.
At the current projected rates of inflation according to the FEDERAL GOVERNMENT healthcare coverage will cost a 65-year-old couple living to normal life expectancy = $319,000 in just premiums.
