Seniors with Medicare Are Facing Large Medical Debts


Many people assume that retireesdon’t have to worry about medical expenses because they have Medicare. Unfortunately, this is not always the case and seniors can’t depend on Medicare to pay for everything they need. Thousands of elderly Americans struggle to keep up with medical costs and eventually find themselves unable to pay their bills. Senior poverty is a national tragedy that has been evolving for decades. While some seniors are fine, many others rely on food pantries and struggle to pay their day-to-day living expenses.

Here’s what you need to know about the startling number of seniors with Medicare who are facing seemingly insurmountable medical debts that are crippling their finances. You will also learn more about one of the most effective strategies to deal with medical debt and financial difficulties in retirement.  

Why Are So Many Seniors with Medicare Struggling with Medical Debt?

While Medicare is essential insurance coverage for seniors, it doesn’t cover everything, especially when it comes to medical costs. It’s important to understand that Medicare has limitations that will not pay all of your medical expenses. 

Medical Services That Medicare Won’t Pay For

Many are surprised to discover how many medical services Medicaredoes and does not cover. Unfortunately, most only find out what Medicare will notcover untilit’s too late.

According to, “Log into (or create) your secure Medicare account, or look at your last “Medicare Summary Notice” (MSN)” to see if you’ve met your deductibles.

  • Check your Part A deductible if you expect to be admitted to the hospital.
  • Check your Part B deductible for a doctor’s visit and other outpatient care.

You’ll need to pay the deductible amounts before Medicare will start to pay. After Medicare starts to pay, you may have copayments for the care you get.”

AARP provides a list of 7 Things Medicare Doesn’t Cover. For example, Medicare doesn’t cover podiatry expenses or treatment for foot injuries, heel spurs, or hammertoes. It also does not cover dental care, which can be quite expensive, especially if you need a root canal or dental surgery. 

Medicare does not cover routine eye exams, glasses or contacts.  Although Medicare will pay for treatment for certain conditions that affect your ears, it will not pay for hearing aids. Likewise, Medicare will not pay for recurring hearing tests. Additionally,original Medicare and most Medicare Advantage plans offer virtually no coverage for medical costs incurred outside the U.S.

Medicare – Long-Term Care and Memory Care

Long-term care is something that almost all seniors require at some point in their lives. Most try to avoid long-term care or memory carefor as long as medically possible. Although the most common reason seniors avoid long-term care services for as long as possible is to preserve their independence, another is the cost.

The average price of long-term care services is between $233,000 to $367,000 during the last five years of life according to Consumer Reports. With this high cost, it’s easy to see how seniors could be overwhelmed by medical debt. The average senior pays $140,000 from their savings for long-term care services. To illustrate just how financially crippling that can be for seniors,consider that the average American retiree has around $229,100 in savings. Long-term care could easily consume a lifetime of savings. 

The True Cost of Medicare CoverageGaps

The gaps in Medicare coverage create a higher cost than the stated out-of-pocket expenses for essential medical services. The true cost is the risk borne by seniors who forgo healthcare services Medicare doesn’t cover. 

While it’s unlikely for a major overhaul of Medicare to occur any time soon, there are solutions. If you’re struggling with out-of-pocket medical debt, you may be able to pay those bills by selling your life insurance policy. Your policycan be sold for cash often forsignificantly more than thesurrender value.Afteryour home, it could be the most valuable asset you own.

It’s worth noting that benefitsof selling your life insurance policyare significant and you can use the money for anything, including paying off medical debts. 

Take Back Your Financial Independence with MRE Finance

MRE Finance specializes in helping seniors sell their life insurance policies for a one-time cash payout known as a life settlement.Whether paying for medical bills, paying other debt or whatever you choose, MRE Financewill find a buyer, answer questions and guide you through the process with ease.

Our free online life settlement calculator can provide you with an estimate of your life insurance policy’s value within minutes. If you prefer to speak with someone, call the experts at MRE Finance today at 1-800-521-0770.

Start your journey to financial freedom with MRE Finance.


Phone: 1-800-521-0770

About MRE Finance LLC

MRE Finance brings over 25 years of experience in the life and viatical settlement industry.  Our mission is to educate and provide information to help seniors and those chronically ill live life with dignity and greater financial stability by assisting them in selling their life insurance policy. MRE Finance believes in being transparent with its clients and, above all respecting their privacy.