5 Things to Do When Your Health Care Costs Go Up During Retirement

If you followed the news in late 2025, you may know that health care premium costs skyrocketed for millions of Americans when certain subsidies expired. Younger retirees who were not yet eligible for Medicare were hit especially hard.

Even if your premiums weren’t affected, health care costs tend to rise more quickly than inflation. That means you may need to adjust your financial strategy. Here’s what to know. And if you need personalized advice on health care costs in retirement and a range of other issues that can impact your future, talk to Farm Bureau. 

1. Save Money for Medical Costs if You’re Still Working

A health savings account (HSA) is a way to invest money for health care expenses so it can compound until you need it. If you’re still earning money during retirement, it’s smart to consider an HSA.

You need to be enrolled in a high-deductible health plan to be able to contribute. HSAs offer a lot of tax benefits:

• Your contributions are tax deductible.
• Those contributions grow without being taxed.
• Withdrawals are tax-free, as long as you use them for qualified medical expenses.

2. Know What Health Expenses You’ll Face

Of course, it’s impossible to know exactly what your medical costs will be. Still, you can do some planning. Medicare covers a lot of health care costs for retirees, but you can still face expenses for things like:

• Premiums
• Deductibles
• Copayments
• Prescriptions
• Dental care
• Vision exams and glasses or contact lenses
• Hearing tests and hearing aids
• Routine physical exams
• Long-term care

When you’re planning for health care in retirement, it’s a good idea to review these costs. 

You may want to add a Medigap or Medicare Advantage plan to help manage these expenses. The monthly payments for one of these plans could offset many of your out-of-pocket expenses and make your health care costs more predictable.

3. Plan for Long-Term Care Expenses

You can’t rely on Medicare to pay for home health aides, assisted living or nursing home care. If you’re planning for retirement or considering early retirement and health care, look into long-term care insurance. 

These plans are most feasible for younger retirees. That’s because most people need to have them in place in their 50s, since costs go up significantly as you get older, and these plans may no longer be an option by the time you’re in your 70s.

4. Consider Turning to Telehealth for Care

When you’re considering health care as a retiree, you may be used to seeing your doctors in person. But telehealth can be a convenient and more affordable alternative for a lot of medical concerns, like managing chronic health conditions, reviewing medications and getting care for minor concerns so you don’t have to go to urgent care or the emergency department.

Telehealth appointments are generally less expensive than in-person appointments, and they may be easier to schedule.

5. Take Care of Your Health

While you can’t guarantee good health, you can take steps to stay as healthy as possible. Staying active, choosing nutritious foods and getting routine exams, screenings and vaccines may increase your odds of spending less on health care during retirement.

Turn to a Pro for Retirement Guidance

Whether you’re years away from retirement or you’ve already ended your career, good planning can help you cover your health care and other expenses in retirement so you have more money available for the things you enjoy. Connect with a Farm Bureau agent for personalized advice.