How Much do Retirees Spend on Healthcare Costs?

One source of financial risk that older Americans face is high health care expenses. Although the largest share of these expenses is due to predictable insur- ance premiums, retirees can pay sizable additional out-of-pocket costs as well.1 Medicare and Medicaid help reduce this risk, but Medicare does not cover every expense and Medicaid covers only households with very low income and assets. Thus, better under- standing the extent of this coverage and the remain- ing burden on individuals is an important issue for retirees and policymakers alike.