An American hoping to retire soon can look forward to spending more than a quarter of a million dollars on health care over the rest of his life. People who are young now will probably spend a lot more than that. That's just a base line: The couple of hundred grand you'll drop on health care does not include extras such as dental care, vision and hearing.

1. Expect Retirement Health Care Costs To Be Higher Than You Think
An American hoping to retire soon can look forward to spending more than a quarter of a million
dollars on health care over the rest of his life. People who are young now will probably spend a
lot more than that. That's just a base line: The couple of hundred grand you'll drop on health
care does not include extras such as dental care, vision and hearing.
How much will health care cost in retirement?
The total amount spent on health care for the average American varies, depending on whom
you ask and how long you may live. Some variables such as health and luck can influence the
cost. But longevity is the wild card.
"How long you're going to live is probably the biggest uncertainty there is," says Paul Fronstin,
director of the health research and education program at the Employee Benefit Research
Institute, or EBRI.
Why is health care so expensive?
The estimates for retirement health care costs factor in a few assumptions -- mainly, that people
buy insurance. That assumes the couple is paying for Medicare parts B, D and a supplemental
insurance policy or Medicare Advantage, known as Part C. All that insurance isn't cheap, except
for Part A of Medicare. It charges no premium for people who worked, as well as their spouses.
"It covers hospitalization. It's free because you're not paying a premium, but you're paying it
while you're working," says Ron Mastrogiovanni, president and CEO of HealthView Services.
Basics provided by A and B can be pricey
Part A of Medicare is paid for by payroll taxes during your working years.
Part B of Medicare covers the nuts and bolts of health care, such as doctor visits, lab tests,
preventive services, ambulance rides and medical supplies such as wheelchairs.
Rx: The price of what the doctor ordered
Prescription drugs are one reason people are living much longer these days. But those drugs
sometimes come at a steep cost. The price of insurance coverage for drugs can also land a
hefty wallop on a budget.
Why are drugs so expensive?
Drug companies can essentially charge whatever they want for drugs. Though other countries
negotiate drug costs, generally, the U.S. doesn't. Even just ponying up the copayments on
some pricy drugs can be enough to break the bank for some retirees.

2. And don't forget about long-term care
A nursing home stay, a universally dreaded catastrophe, is a big cost that no one includes in
their estimates of the cost of care. Only a small fraction of those who need long-term care
actually go to a nursing home for an extended period of time. Millions of people stay at home
getting care from friends and family.
What can a retiree do?
Staying as healthy as possible is one way to mitigate retirement health care costs. And one way
to do that is by being an informed consumer of health care services.
Further, consumers should seek out quality health care providers and hospitals with low rates of
hospital-acquired infections.
Retirees must walk the fine line of being informed patients and undergoing only necessary
treatments. At the same time, they should not skimp too much, lest they incur more health care
expenses from neglecting their health in an effort to save money.