25 Best U.S. Cities for Retirement Healthcare

Published on July 21, 2024 at 10:59 am by Ghazal Ahmed in News, Retirement

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This article looks at the 25 best US cities for retirement healthcare.

Healthcare Costs in Retirement: A Comprehensive Overview

Healthcare is one of the biggest expenses for retirees. Studies estimate that a retired couple needs as much as $351,000 to cover healthcare costs during the retirement period. In contrast, the Survey of Consumer Finances reveals that the average retirement savings for all families is only $333,940, savings which must also cover groceries, rent, utilities, and much more. To make things worse, this number only depicts 54.4% of families that hold retirement accounts. The rest (almost half) of America isn’t investing for retirement at all. A lot of retirees are under the false impression that Medicare will be there for them once they retire. While this is partially true, Medicare doesn’t kick in until the age of 65. Also, it doesn’t cover everything, something that many individuals lack knowledge about. According to a 2019 AARP study, people with traditional Medicare spent $6,663 on average on medical services and insurance premiums. Moreover, the Center for Retirement Research at Boston College reveals that Medicare and other insurers cover almost 78% of total healthcare spending. Meanwhile, households cover the remaining 22%-making it $67,260, on average for a 65-year-old household. Retirees need to understand the limitations of such programs, otherwise they will be subject to bills they aren’t prepared to pay. Some items that Medicare doesn’t cover include long-term care, the majority of dental care, eye exams, dentures, cosmetic surgery, routine physical exams, and hearing aids, amongst others.

While healthcare costs may seem scary, a T. Rowe Price Group, Inc. (NASDAQ:TROW) report reveals how planning for healthcare can be made simpler by using the available assets and income that retirees have. Approaching these costs as an annual expense, for example, can help retirees plan better for them. Moreover, premium and out-of-care expenses must be treated differently. As per a T. Rowe Price Group, Inc. (NASDAQ:TROW) estimates based on 2024 Medicare premiums and data from the Health and Retirement Study (HRS), the majority of retirees pay between 73% and 81% of annual healthcare costs to Medicare premiums with prescription drug coverage amount. In contrast, out-of-pocket expenses vary greatly for each individual, and can also change month to month. These costs are the primary source of uncertainty in healthcare costs for retirees. T. Rowe Price Group, Inc. (NASDAQ:TROW) believes that maintaining a savings account having enough liquid expenses to cater to annual out-of-pocket expenses and replenishing it on an annual basis, can help mitigate the level of uncertainty associated with out-of-pocket expenses.

T Rowe Price Group, Inc. (NASDAQ:TROW) recently made it to our list of 10 Best Dividend Growth Stocks to Buy and Hold Now. It is an investment management company offering a wide range of services such as personal finance, retirement, and investment products and solutions. Its revenue model relies on charging fees to manage investments for its clients. These fees are typically associated with assets under management (AUM), causing the company’s earnings to fluctuate depending on the changes in the value of the assets it manages. As of May, the company reported a growth in its AUM from $1.49 million to $1.54 million owing to favorable market conditions. The company is a dividend aristocrat with a 38-year track record of consistent dividend growth. The company’s current quarterly dividend comes in at $1.24 per share.

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While healthcare expenses are a significant cause of concern for retirees, choosing where to retire to avail good-quality healthcare is also a matter of concern for many individuals. For this reason, we have compiled a list of the best places to retire in the US with good healthcare.

An exterior view of a major healthcare facility, showcasing the multiple services provided.

Methodology

To compile the list of best U.S. cities for retirement healthcare, we conducted a comprehensive assessment using data from authoritative sources including Medbelle, Best Hospital Review, Healthcare Insider, Becker’s Hospital Review, Newsweek, Healthgrades, and Blue Cross Blue Shield. This initial evaluation identified cities with exceptional hospitals, healthcare quality, services, and healthcare workers. The selected cities were then rigorously analyzed based on key metrics such as affordability, healthcare quality, senior services, and accessibility. This approach allowed us to derive a final Insider Monkey Score.

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Here are the 25 Best U.S. Cities for Retirement Healthcare:

25. Durham, North Carolina

Insider Monkey Score: 76

Also known as the City of Medicine, Durham is home to more than 300 medical and health-related companies and medical practices. The city is home to the nation’s leading research institute, Duke University, which means seniors can benefit from access to clinical trials and the latest advancements in medical research. The city also boasts one of the highest per capita concentrations of physicians and hospital beds in the state. The approximate average of physicians here is 10.6 per 1000 residents. Durham is also known for being an affordable city, having a cost of living 1% lower than the national average. This makes it one of the best cities to retire in 2024.

24. Baltimore, Maryland

Insider Monkey Score: 78

From top assisted living communities to nursing homes and continuing care, Baltimore is another one of the best U.S. cities for retirement healthcare. Home to the world-renowned John Hopkins Hospital which ranks number 7 in geriatrics, seniors get to benefit from cutting-edge research, clinical trials, as well as the latest advancements in medical science.

23. Philadelphia, Pennsylvania

Insider Monkey Score: 78

Philadelphia has been a medical hub since the 1700s, and the situation has improved ever since for healthcare. 80% of US and pharmaceutical companies have a presence in the region, while 20% of the workforce in this region is employed in the healthcare industry. Leading hospitals and medical schools such as the Hospital of the University of Pennsylvania (Penn Medicine) and Thomas Jefferson University Hospital offer specialized care for seniors.

22. Austin, Texas

Insider Monkey Score: 78

Austin is home to a wide variety of geriatric clinics, high-quality hospitals, and medical facilities for seniors as well as other age groups. The greater Austin area also flaunts more than 750 physicians in 50-plus fields, while the city also has some of the largest community hospitals such as St. David’s Medical Center, St. David’s South Austin Medical Center, and St. David’s North Austin Medical Center. Seton Healthcare Family Hospitals and the Dell Seton Medical Center at The University of Texas are some other big names in the area.

21. Salt Lake City, Utah

Insider Monkey Score: 78

Besides being home to leading healthcare centers such as the University of Utah and Intermountain Healthcare, Salt Lake City boasts a good quality of life, an efficient public transportation system, and a wide range of senior living options. There are above-average doctors per capita in the city as well.

20. Los Angeles, California

Insider Monkey Score: 79

Home to renowned medical institutions such as UCLA Health, Cedars-Sinai Medical Center, and Keck Medicine of USC; Los Angeles is another one of the best U.S. cities for retirement healthcare. The only downside to living here is its high cost of living, so healthcare can be pricier than other cities.