Retirees Beware: Medicare Won't Cover Inpatient Hospital Costs Forever

The main purpose of Medicare Part A is to help pay for hospital stays at facilities that accept the government healthcare plan. These include acute care hospitals, inpatient rehabilitation facilities, inpatient psychiatric care facilities, long-term care hospitals, and the care a Medicare patient receives as part of a qualified clinical research study. However, this does not mean that Medicare Part A will pay for anything and everything. And it does not last forever. According to Medicare.gov, as of 2025, Medicare Part A will fully cover only the first 60 days of a hospital stay after the patient's deductible of $1,676 is met. After that, between days 61 and 90, the patient owes $419 per day.

By Day 91, this gets even more expensive and complicated. Retirees using traditional Medicare receive 60 "lifetime reserve days" that kick in after a three-month hospital stay. During this phase, Medicare members pay $838 a day until their lifetime allotment of 60 reserve days runs out. When that happens, or by Day 151, the patient then must pay for the full-price of a hospital stay which, as of 2023, averaged around $3,132 a day in the United States, according to health policy organization KFF.

Besides only covering the first 60 days for a semi-private room, Medicare Part A also covers the cost of meals, required drugs, general nursing services, and whatever hospital services are needed as part of the patient's treatment. What Medicare Part A will not pay for are private rooms, unless it is deemed medically necessary. Medicare Part A also won't pay for any care items such as anti-slip socks, nor will it pay for a private-duty nurse. If the hospital you are at charges patients for having a telephone or TV in a room, Medicare will also not pay for it. The good news is that hospitals are required by law to list what they do and don't charge for services and items on a public website.

With this said, about 80% of doctors' services can be paid for by Medicare Part B, which covers general outpatient care. This can include any services received on the last day of a hospital visit, including observational services, which may be considered outpatient care, though that is to be determined by the doctor and hospital, per a Medicare fact sheet. Ultimately, the best way for a retiree to avoid astronomical hospital costs in the future is to seek out supplemental insurance from private insurance companies under the government's Medicare Part C or Medigap programs.

Created in 1965, the original Medicare Part A and Part B plans do not cover all healthcare costs for seniors. Some services such as dental, eye exams, hearing aids, and long-term care at assisted living facilities are not covered by Part A or Part B at all. Nor will original Medicare cover hospital stays outside the U.S. in most situations, which is something to consider before moving to a top ranked European country for retirement.

There are Medigap insurance plans that can help reduce the cost of long hospital stays, and some foreign hospital stays, according to the National Council of Aging. There are also some Medicare Advantage (Part C) plans that include a hospital coverage limit of 270 days, per eHealthInsurance.org, though patients will be restricted to the insurance plan's network. In addition, Medicare Advantage plans replace the basic coverage of original Medicare with its own. And while you can have Medigap with original Medicare, you cannot combine it with Medicare Advantage, per NCOA.

The bottom line is that retirees will need to do some research to find the best Medicare health plan for their needs — as there are benefits and costs with each program and plan. Also, things may get rougher for retirees in the next few years. A report from the Committee for a Responsible Federal Budget warned that seniors may have less access to health care if Medicare and Social Security trust funds run out in 2032 as a result of new tax deductions under the One Big Beautiful Bill Act.