According to Fidelity’s latest estimate, cited by Orman, someone who turns 65 this year and enrolls in Original Medicare could expect to spend approximately $185,500 out of pocket on healthcare over the remainder of their lifetime.
That’s a substantial increase from the previous year’s estimate. Orman notes that the $185,500 figure is 7.5% higher than a year earlier, reflecting rising healthcare costs as well as an increase in the monthly premium for Medicare Part B.
And that estimate doesn’t even include everything.
“Medicare does not pay for the cost of ongoing long-term care assistance,” Orman writes, whether that care is provided at home or in a nursing home.
Medicare doesn’t mean retirement healthcare is free
The $185,500 figure can sound especially daunting when viewed as a single lump sum. But Orman points out that it’s an estimate of healthcare spending over an entire remaining lifetime — not a bill someone will receive when they enroll in Medicare at 65.
For a 65-year-old woman in average health, for example, the costs would be spread over more than two decades. Still, $185,500 is a lot of money.
“That’s just for actual medical care,” she writes, emphasizing that long-term care expenses can fall outside Medicare’s coverage. Retirees have choices when it comes to Medicare coverage, but Orman also cautions against assuming higher-tier options will eliminate expenses.
With Original Medicare, beneficiaries receive coverage through Medicare Parts A and B but are still responsible for deductibles, coinsurance and other out-of-pocket costs, which is why many people purchase a separate Medigap policy to help cover those expenses.
However, while Medigap can make covered medical costs more predictable, it comes with its own monthly premium. According to Orman, Medigap premiums in 2026 typically run around $150 to $250 per month (and are on the rise, with premiums increasing by as much as 45% in some states), although costs vary by state and can reach $300 or more in higher-cost corners of the country.
Medicare Advantage, meanwhile, is offered by private insurers and can have lower upfront costs, sometimes including $0 plan premiums. That said, beneficiaries typically pay deductibles, copays and coinsurance when they receive care and may have to use a provider network.
