Medical expenses can create financial strain, even for those with robust savings plans. The added problem of medical inflation, which is the increase in the cost of healthcare services over time, can further exacerbate this burden. Planning ahead can help you prepare for the impact of medical inflation, especially in retirement.

Maintain Good Health - Healthy habits, such as a balanced diet, regular exercise, and routine check-ups, may help reduce the likelihood of needing some costly medical services. Many health plans, including Medicare, cover certain preventive services at no additional cost.

Choose the Right Health Coverage - Health insurance is a key part of managing medical costs. Look for coverage that fits your health needs, and review each plan's premiums, deductibles, out-of-pocket maximums, and provider network. For those on Medicare, the annual open enrollment period (October 15 through December 7) is a chance to compare Medicare Advantage, Medigap, and Part D prescription drug plans, since costs and coverage can change each year.

Plan for Long-Term Care - Medicare generally does not cover long-term custodial care, which can be one of the largest healthcare expenses in retirement. Long-term care insurance, or a hybrid life insurance policy with a long-term care benefit, may help cover these costs. Many long-term care policies offer an inflation protection rider, which increases benefits over time for an additional premium.

Use an HSA or FSA - Consider establishing a health savings account (HSA) or flexible spending account (FSA). Both allow pre-tax contributions, and withdrawals for qualified medical expenses are tax-free. An HSA requires enrollment in a qualifying high-deductible health plan, and unused balances roll over from year to year. You can no longer contribute to an HSA once enrolled in Medicare, but you can still use existing funds for qualified expenses. Most FSA balances must be used within the plan year.

Invest for the Long Term - A diversified investment portfolio that includes a mix of asset classes, such as stocks and bonds, seeks long-term growth that may help offset rising costs over time. Returns are not guaranteed, and diversification does not ensure a profit or protect against loss.

Maintain an Emergency Fund - A healthcare-focused emergency fund can also serve as a safety net for unexpected medical costs. A good rule of thumb is to set aside at least 3 to 6 months' worth of living expenses in this fund.

Stay Informed and Compare Costs - Understand what drives medical inflation, monitor how costs are changing, and understand the healthcare market. For instance, it is often cheaper to purchase prescription drugs from a pharmacy than to receive them at a hospital.

While medical costs and inflation may seem beyond our control, several strategies may help manage their impact as part of a broader retirement plan. Remember, your health is your greatest wealth.