Beneficiaries' Lack of Medicare Knowledge Could Lead to Dissatisfaction in Plans

A MedicareAdvantage.com survey found more than two-thirds of Medicare beneficiaries find their insurance confusing and hard to understand, and few comprehend basic insurance terminology, reports Healthcare Finance News . The poll included 1,000 Medicare enrollees, and less than half could correctly define deductible or coinsurance, while only 52 percent could describe what a premium is. Meanwhile, more than 85 percent believed Medicare Part A deductibles were yearly, when in fact they run on a cycle of "benefit periods." Some 70 percent wrongly asserted that the U.S. Centers for Medicare and Medicaid Services will notify them when it is time to enroll and that Medicare Part A and Part B have annual out-of-pocket spending limits. More positively, 54 percent knew that they can enroll late in Part B, but a late-enrollment penalty may be assessed for every month in the plan. Over three-quarters were aware that they have to pay the Part B premium every month, even if they do not use it. Study author Christian Worstell said these findings point to a general misunderstanding of Medicare insurance, which could lead to unnecessarily high out-of-pocket costs, poor healthcare choices, and lessened overall health among beneficiaries. "The fact that many customers are unaware of the out-of-pocket costs and coverage gaps associated with Medicare means that insurance carriers have every incentive to educate beneficiaries of those costs and gaps, especially if the private Medicare plans they offer can help fill some of those needs," he declared.