Then, of course there are the monthly health insurance premiums that are deducted automatically. Part A covers a nice array of services, including inpatient hospital care, hospice, lab tests, surgery, home health care and skilled nursing facility, but it falls short in many other areas. In terms of a secondary policy, "The best option is to have a retirement health insurance policy from your former employer, but that's fairly uncommon," Garcia says. So be sure to thoroughly consider your own needs and budget when figuring out post-retirement health care coverage. "Typically Medicare will only pay for the first 100 days of skilled nursing care," Hyers says.