Medicare Advantage enrollees need less retirement savings for healthcare costs: Report

Medicare beneficiaries who enroll in a Medicare Advantage plan may need less retirement savings to cover their healthcare costs, an analysis published Feb. 9 by the Employee Benefits Research Institute found. 

The study's authors note that healthcare costs are largely dependent on individual circumstance, but enrollees in Medicare Advantage have lower retirement savings targets than counterparts in traditional Medicare. 

A couple enrolled in a Medigap plan with average premiums would need $212,000 in savings to have a 50 percent chance of affording all their healthcare expenses, and $318,000 saved to have a 90 percent chance of covering all these expenses.

Compared to counterparts in Medigap plans, MA enrollees would need less savings, on average, the study's authors found. 

A couple in a MA plan would need $123,000 in savings to have a 50 percent chance of covering all their healthcare expenses and $184,000 for a 90 percent chance.

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