I’m 64 years old and have $630,000 saved up for retirement. I’m concerned about potential changes to Medicare under the Trump administration — how can I plan for this ASAP?

Taking care of your physical health becomes increasingly important as you age, including ensuring comprehensive insurance. Medicare offers coverage starting at 65, but you may have concerns about the program’s future under the Trump Administration.

If you're worried about health care needs and potential changes to Medicare, here's what you need to know.

How might President Trump change Medicare?

Now that President Trump has officially won the election, addressing Medicare’s challenges may fall to his administration.

Medicare costs are quickly becoming unsustainable, with spending expected to double from $900 billion in 2022 to $1.8 trillion by 2031. The Medicare trust fund is also expected to run dry as early as 2031, jeopardizing its ability to meet obligations.

While Trump’s 2024 platform pledges to “fight for and protect” Medicare without cuts, Congress ultimately controls legislation. A Republican-led Congress might pursue reforms previously proposed, such as:

• Covering the cost of using smartphone apps to treat certain conditions
• Implementing site-neutral payment policies to align hospital and provider fees
• Offering tax credits to family caregivers
• Expanding Medicare provider options
• Reducing regulation to allow market-driven pricing
• Using AI to lower healthcare costs
• Encouraging seniors to switch to Medicare Advantage plans

These changes are unlikely to result in immediate or long-term benefit cuts. Instead, they could reduce costs for certain services or provide more options for care and coverage.

However, the Department of Government Efficiency may push for spending cuts as part of efforts to reduce wasteful expenditures. While it’s unclear how this might affect Medicare, the razor-thin Republican majority in the House of Representatives makes significant cuts unlikely.

How can you prepare for health care costs in retirement?

Regardless of potential Medicare changes, preparing for health care costs is a big part of retirement readiness.

Fidelity estimates that a 65-year-old retiree will need an average of $165,000 to cover health care costs throughout retirement — a big chunk of your $630,000 savings. If Medicare benefits are reduced, this figure could increase.

If you're already 64, time is limited to bolster your financial readiness. Here’s what you can do:

• Carefully evaluate Medicare Advantage and Medigap plans to ensure comprehensive coverage.
• If you’re still working, contribute to a health savings account (HSA) if eligible.
• Create a budget for medical expenses and maintain an emergency savings fund.

For younger Americans, building a larger retirement fund — ideally through an HSA — can provide a buffer against potential Medicare changes. With younger generations more likely to face changes to the program, proactive saving is critical to address gaps in coverage.