Health Care Costs Climb for Retiring Couples

By Staff Report

Mar. 25, 2010

A 65-year-old couple retiring in 2010 without employer-provided retiree health insurance will need about $250,000 to pay future medical-related expenses, Fidelity Investments said in an analysis released Thursday, March 25.

This amount, up from $240,000 last year, includes expenses such as Medicare premiums, co-payments and deductibles. The higher tab for retiree health expenses comes as the number of employers offering such coverage shrinks, increasing the number of retirees who must pay a major portion of their health care expenses.

Significant drivers of increases in retiree health care costs include higher provider charges and increased expenses associated with new technology, Fidelity said in the analysis.

Of the $250,000 needed to cover a retired couple’s health care expenses, Fidelity estimates 30 percent will go toward paying Medicare Part B and Part D premiums; 40 percent will be consumed by expenses not covered by Medicare, such as co-insurance and deductibles imposed by Medicare; and 30 percent for out-of-pocket prescription drug expenses.

A summary of the analysis is available at 

Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.



blog workforce

We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.

Book a call
See the software

Related Articles

workforce blog


EEOC says that employers legally can offer incentives to employees to get vaccinated in almost all instances

If you’re an employer looking to get as many of your employees vaccinated as possible, you can rest eas...

ADA, CDC, COVID-19, EEOC, GINA, pandemic, vaccinated

workforce blog


Fixing some common misconceptions about HIPAA

Ever since the CDC amended its COVID-19 guidance to say that the fully vaccinated no longer need to wea...

COVID-19, health care, HIPAA, human resources, wellness

workforce blog


We are in the midst of a public mental health crisis; how employers can help

Do not ignore these issues or your employees who are living with them. Mental health illnesses are no d...

ADA, benefits, Coronavirus, FMLA, mental health, paid time off