A retirement cost many people overlook

Many people forget to account for some expenses when mapping out retirement. In conversations with older adults about their finances in retirement, dental care comes up again and again. That is easy to understand: Teeth tend to deteriorate with age, yet Medicare generally does not pay for routine dental treatment, aside from emergency procedures for hospitalized patients.

Many people forget to account for some expenses when mapping out retirement. In conversations with older adults about their finances in retirement, dental care comes up again and again. That is easy to understand: Teeth tend to deteriorate with age, yet Medicare generally does not pay for routine dental treatment, aside from emergency procedures for hospitalized patients.

There are three primary ways retirees can handle dental costs: purchase dental insurance, choose a Medicare Advantage plan that includes dental benefits, or pay the bills themselves.

Standalone dental insurance

Older adults can buy separate dental insurance, usually for monthly premiums in the $25 to $50 range. But coverage can vary greatly, and many plans limit how much they will pay each year. Those annual caps often fall between $1,000 and $2,500, which offers limited help if treatment is extensive or expensive. Many policies also include waiting periods, blocking major services such as crowns or root canals for the first six to 12 months.

These plans often require patients to use certain providers. Dental health management organizations are generally the most restrictive, though they also tend to be the least expensive.

Overall, the combination of premiums and coverage limits makes standalone dental insurance a weak financial deal for many retirees. Still, one argument in its favor is that people without dental coverage are more likely to skip care, according to data from the Medical Expenditure Panel Survey.

Dental coverage through Medicare Advantage

Many Medicare Advantage plans include dental benefits, along with vision coverage and hearing aids. Medicare Advantage is the private, managed-care version of Medicare, and enrollees must choose from approved providers, so it may not work well if your preferred dentist is outside the network.

In a broader sense, dental coverage alone should not decide whether someone picks Medicare Advantage or traditional Medicare with supplemental coverage. Medicare Advantage can be less expensive, but out-of-pocket costs can be high. Networks may also be restrictive, and some plans require referrals before seeing specialists, which can delay treatment. People who later leave Medicare Advantage for traditional Medicare may also have to pass medical underwriting to get Medigap coverage.

In the end, these trade-offs suggest that dental benefits should be a secondary consideration when choosing retirement health coverage. If Medicare Advantage otherwise fits your needs, dental coverage can be viewed as a bonus.