How is she funding her health care during those two years? Speaker 1: She can't get on Medicare, so she has to buy private insurance. Yes. Speaker 2: And buying a private health insurance policy on the open market at age 63 without employer subsidies is astronomically expensive. Speaker 1: It could easily cost $ 1, 000 a month just in premiums, right? With massive deductibles on top of that. Speaker 2: Easily. Furthermore, she is three to four years away from her full Social Security benefit. Speaker 1: But she could take it early, couldn't she? Speaker 2: She could claim it early at 62, yes. But she takes a permanent reduction in her monthly payout.

That $ 285, 000 is required to cover the premiums for Medicare, Parts B and D. Speaker 1: Part B is medical insurance. Part D is prescription drugs, right? Speaker 2: Exactly. Plus, it covers the premiums for supplemental Medigap policies, which you almost certainly need, and the out-of-pocket costs for vision, hearing, and dental. Speaker 1: Wait, basic Medicare doesn't cover vision or dental? Speaker 2: Routine dental and vision, no. Hearing aids, no. And those things get incredibly expensive as you age. Speaker 1: So that $ 285, 000 is just for the premiums and the out-of-pocket stuff for a normal, relatively healthy aging process. Speaker 2: Exactly.

Speaker 1: Let's just pause on that number for a second. Over a quarter of a million dollars. Speaker 2: $ 285, 000. Speaker 1: And we need to clarify exactly what that covers because the most terrifying caveat in this entire analysis is that the $ 285, 000 estimate assumes the couple is already enrolled in Medicare. Speaker 2: That is the critical blind spot for most people. Speaker 1: People think Medicare is free. Speaker 2: They really do. There's a pervasive myth in this country that hitting 65 and entering the Medicare system means health care is suddenly free or at least negligible. Speaker 1: But it's not. Speaker 2: Not at all. Medicare is a robust system, sure, but it is riddled with deductibles, co-pays, and significant gaps in coverage.