This content is sponsored by MOAA Insurance.
Turning 65 is a major milestone. For many military retirees and their families, it also marks the point when Medicare and TRICARE For Life become the foundation of their healthcare coverage.
Medicare covers many medically necessary services, including inpatient hospital care, outpatient care, and in some cases ambulance transportation. According to Medicare's ambulance services coverage guidelines¹, Part B may pay for emergency ground or air ambulance services when other forms of transportation could endanger your health.
But Medicare itself is very clear about one important reality. There are many services Original Medicare does not cover², including most long-term care, custodial care, and many of the non-medical costs that often come with serious health events.
This is where many retirees discover that being “covered” does not always mean being “financially protected.”
The Coverage Gap Many People Discover After 65
It is easy to assume that once Medicare and TRICARE For Life are in place, most major risks are behind you.
In reality, Medicare is designed to pay for medical treatment, not the full financial impact that can follow a serious health event. Many common situations fall outside what Medicare fully covers, including:
- A hospital stay followed by weeks of recovery
- Needing help at home after surgery or illness
- A sudden medical emergency that requires expensive transportation
- A long-term decline that requires ongoing assistance
- End-of-life expenses that can disrupt even well-planned finances
Even when Medicare covers a service, beneficiaries are often still responsible for deductibles and coinsurance. For example, Medicare beneficiaries typically pay 20% coinsurance³ for Part B services after meeting the deductible, including ambulance transportation.
That means a serious health event can still result in meaningful out-of-pocket bills.
Looking more broadly, healthcare costs in retirement extend well beyond doctor visits and procedures. Long-term care is a clear example. Medicare generally does not pay for ongoing custodial care, such as help with bathing, dressing, or eating. According to data from the U.S. Department of Health and Human Services⁴, about 70% of adults over age 65 will require some form of long-term care during their lifetime, and many of those needs extend far beyond what Medicare covers and does not cover².
Those costs can add up quickly. The Genworth Cost of Care Survey⁵ shows that in-home care, assisted living, and skilled nursing facility care can cost tens of thousands of dollars per year.
Emergency transportation is another often-overlooked risk. Even when Medicare covers part of an ambulance or air transport, patients may still face large out-of-pocket costs as explained in independent analyses of Medicare ambulance coverage⁶.
A Smarter Way to Plan: Filling the Gaps Around Medicare
MOAA members have access to additional options designed specifically for this stage of life, including coverage that helps address four of the most common financial pressure points after 65.
1. Hospital Indemnity and Short-Term Recovery Needs
A hospital stay often triggers expenses that traditional medical insurance does not fully address, such as:
- In-home assistance
- Skilled care during recovery
- Transportation or support services
This is why some members explore Hospital Indemnity and Short-Term Recovery Insurance to provide cash benefits that help manage the real-world costs that follow a hospital admission.
2. Financial Certainty With Guaranteed Whole Life Insurance
Many people think life insurance is only for working years. In reality, it can still play an important role in retirement planning by helping:
- Cover final expenses
- Protect savings from being depleted
- Leave a financial legacy without complexity
Some members choose Guaranteed Whole Life Insurance because it offers predictable coverage and stable premiums later in life.
3. Protection From Emergency Medical Transportation Costs
Emergency transportation can be one of the most unpredictable and expensive parts of a health crisis.
Even with Medicare, patients may still face deductibles, coinsurance, or charges that exceed what Medicare approves. For that reason, many retirees look into Medical Transportation Coverage designed to reduce or eliminate out-of-pocket exposure for both ground and air transport.
4. Long-Term and Short-Term Care Planning
Because Medicare generally does not cover long-term custodial care, these costs can pose one of the biggest threats to retirement savings.
Long-term care typically refers to ongoing assistance with everyday activities such as bathing, dressing, eating, or supervision due to chronic conditions, cognitive decline, or lasting functional limitations. These needs can continue for months or years and are often provided at home, in assisted living settings, or in skilled nursing facilities. Since Medicare generally does not cover this type of care, many members review Long-Term Care Insurance as one way to help preserve independence and protect assets.
Short-term care, by contrast, it is designed to address temporary care needs that may arise after surgery, illness, or injury. This can include help during recovery, rehabilitation support, or limited in-home assistance while someone regains strength or mobility. Short-term care solutions are intended to bridge a gap during recovery, not to cover ongoing or permanent care needs.
Planning for both types of care can help retirees better prepare for different health scenarios, from brief recovery periods to longer-term changes that may require additional support.
Why Many Retirees Are Reviewing This Now
Americans are living longer. Healthcare systems are under more strain. And the financial impact of a single health event can be larger than many people expect.
At the same time, more retirees are navigating retirement with fewer built-in supports. Many are aging far from family, want to remain independent longer, and are trying to stretch savings across longer retirements.
Together, these realities make the transition around age 65 a natural planning checkpoint, not something to postpone until after a crisis.
This is not about starting over. It is about reinforcing what you already have.
Medicare and TRICARE For Life remain the foundation. The goal is simply to understand where the gaps are, and decide whether additional layers of protection make sense for your situation.
Don’t Wait to Learn What Isn’t Covered
Most people only discover coverage gaps when a bill arrives or when a family emergency is already in motion.
A simple review now can help you understand your exposure and make informed decisions before those situations arise.
If you want to explore options designed for life after 65, you can start with a benefits review for MOAA members or speak with a licensed representative by calling us at 1-800-247-2192 about what fits your needs and priorities.
Sources
¹ Medicare.gov – Ambulance services coverage
² Medicare.gov – What Original Medicare doesn’t cover
³ Medicare Interactive – Ambulance transportation basics and Part B coinsurance
⁴ U.S. Department of Health and Human Services (ACL) – How much care will you need?
⁵ Genworth – Cost of Care Survey
⁶ Solace Health – Medicare medical transportation coverage analysis