Saving for health expenses in retirement is a bigger worry than it once was, not only because of rising medical costs but also because fewer employers offer health benefits to their retired workers. The Employee Benefit Research Institute, a nonprofit, reported in a separate analysis that about a quarter of large employers offered retiree health benefits in 2021, down from half about 25 years ago. Medicare covers hospital stays, doctor visits and lab tests, as well as prescription drugs. Premiums vary for Part D, which covers prescription drugs. Starting in 2025, as part of changes made to Part D in the Inflation Reduction Act of 2022, out-of-pocket costs for prescription drugs will be capped at $2,000 a year.

---

Persons: didn’t, ” Jake Spiegel, that’s, Manion Organizations: Research Institute, Fidelity, Medicare