Most retirees plan for the obvious healthcare expenses: Medicare premiums, prescription drug coverage, supplemental insurance, and possible long-term care.
That planning matters. But some healthcare costs can still surprise retirees later.
Industry estimates often place lifetime healthcare spending for a retired couple in the hundreds of thousands of dollars, excluding extended care. But even that number may not capture every real-life expense retirees face.
At True North Wealth Management, we help clients think beyond the obvious line items so healthcare planning supports a stronger retirement strategy.
Prescription Drugs That Do Not Fit the Plan
Medicare Part D now includes an annual out-of-pocket cap for covered prescription drugs. For 2026, that cap is $2,100.
The key word is covered.
Each Medicare drug plan has its own formulary, or list of covered drugs. If your plan covers your medication, the cap can provide meaningful protection. If your plan does not cover it, you may face much higher costs or need to pursue an exception, alternative medication, or different plan.
That makes the annual Medicare review especially important. Plans can change their drug lists, premiums, pharmacies, deductibles, and cost-sharing rules.
Retirees who take expensive medications should review coverage every year during Medicare Open Enrollment.
The Hidden Cost of Living Remotely
Many people dream of retiring somewhere quiet, scenic, and less crowded.
That can bring a wonderful quality of life. It can also create healthcare access challenges.
Retirees who live in rural or remote areas may need to travel farther for specialists, hospitals, diagnostic testing, surgery, or follow-up care. That can add costs for fuel, flights, lodging, meals, caregiver travel, and time away from home.
For retirees in places like Alaska, these costs may not feel theoretical. Distance can become part of the healthcare budget.
Before relocating in retirement, consider what medical care may look like five, ten, or twenty years later.
Concierge Medicine
Some retirees also consider concierge medicine.
In a concierge model, patients pay a monthly or annual membership fee directly to a physician or medical practice. In exchange, they may receive longer appointments, faster access, direct communication, and a more personal relationship with their doctor.
This model can appeal to retirees who value convenience and continuity of care.
However, concierge fees typically sit outside normal insurance premiums and may not replace Medicare, supplemental coverage, or prescription drug coverage. Retirees should understand what the membership includes, what insurance still covers, and what expenses they may pay separately.
Ask More “What If” Questions
Healthcare planning should go beyond premiums.
Consider asking:
- What if one prescription falls off the formulary?
- What if we need to travel for specialty care?
- What if one spouse needs more medical support than expected?
- What if we want faster access to a physician?
- What if long-term care becomes part of the picture?
- What if healthcare inflation runs higher than expected?
These questions can help turn a generic retirement budget into a more realistic plan.
Plan for Care, Access, and Flexibility
Healthcare expenses can affect cash flow, investment withdrawals, tax planning, insurance choices, housing decisions, and estate goals.
At True North Wealth Management, we help clients plan for the healthcare costs they expect—and the ones that may catch them off guard.
A strong retirement plan should account for care, access, flexibility, and the possibility that health needs may change over time.
Important Disclosures:
This material is for informational purposes only and is not intended as tax, legal, medical, Medicare, insurance, long-term care, or individualized financial advice. Medicare rules, premiums, coverage, formularies, out-of-pocket limits, and plan options may change. True North Wealth Management does not provide tax, legal, medical, or insurance advice. Consult qualified tax, legal, medical, Medicare, insurance, and financial professionals regarding your circumstances.
1. The Wall Street Journal
2. Medicare.gov
3. cms.gov
4. KFF.org
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite and customized by True North Wealth Management LLC to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.