I don't love the term "healthcare consumer," nor what it implies: that Americans should shop for healthcare like we do flat-screen TVs. At least TVs are getting cheaper, and you know what you'll pay when you get to the register. With a healthcare procedure--good luck!
Healthcare costs mount sharply in retirement, when you tend to use more of a rapidly inflating service. Retirement healthcare costs rose 7.5% this year over last, according to Fidelity. A 65-year-old retiring today needs $185,500 saved to pay for healthcare costs in retirement, according to the company's 2026 Retiree Health Care Cost Estimate. And that's with Medicare coverage!
Comparison shopping for Part D drug plans or Medicare Advantage plans can lower your outlay to some extent. Traditional Medicare plus a comprehensive Medigap plan typically involves higher costs but more predictability. With that coverage, you'll pay monthly premiums but little, if anything, at the doctor's office. With Medicare Advantage, you'll owe co-pays and deductibles and--if you go outside the plan's provider network--a lot more for your care.
If you can afford it, traditional Medicare plus Medigap is the way to go. You won't have to wear your consumer hat all the time, because there aren't many gotchas. With Medicare Advantage, you have to negotiate provider networks, referral and prior authorization requests, and care denials. If time is money, then Advantage is the more costly choice.
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July 26, 2026 09:50 ET (13:50 GMT)
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