Health-Care Shock in Retirement

People thinking about moving after retirement are more concerned with the weather than they are about changes in health-care costs, according to a recent survey. But a comparison of insurance prices shows that failing to compare Medicare premiums could lead to surprises. That's because rates can vary greatly-by locale, company or both. The low-cost provider you researched so diligently in one place may be one of the most expensive elsewhere.

Premium prices depend on the cost of care in a given community and on the local pool of insured customers. "If you're moving, you shouldn't assume that your costs will be anywhere near what you're paying today," says Peter Landau, vice-president of Longevity Alliance, a network of insurance brokers.

For example, a 67-year-old female nonsmoker might pay $1,383 a year in Chicago for a standardized Plan F Medicare supplement policy, but she'd pay $3,527 for the same coverage with the same company in Miami and $1,207 in Phoenix. With a competing firm, she'd pay $2,736 a year in Miami and $1,440 in Phoenix.

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Medicare Advantage plans, based on regional networks of doctors and services, don't transfer at all. You'll have to enroll anew, assuming an Advantage option is available. The plans aren't standardized, so you'll need to scrutinize benefits.

As long as your health hasn't changed, some comparison-shopping is in order. At Medicare.gov, you'll find a range of rates, benefits and contact information for companies providing coverage in a certain zip code. Or contact a broker who represents a variety of companies and plans.

Anne Kates Smith brings Wall Street to Main Street, with decades of experience covering investments and personal finance for real people trying to navigate fast-changing markets, preserve financial security or plan for the future. She oversees the magazine's investing coverage, authors Kiplinger’s biannual stock-market outlooks and writes the "Your Mind and Your Money" column, a take on behavioral finance and how investors can get out of their own way. Smith began her journalism career as a writer and columnist for USA Today. Prior to joining Kiplinger, she was a senior editor at U.S. News & World Report and a contributing columnist for TheStreet. Smith is a graduate of St. John's College in Annapolis, Md., the third-oldest college in America.