A Knowledge Gap Exists
According to a recent GoHealth study, many older Americans lack knowledge and awareness of the full menu of Medicare options available to them.
As the saying goes, if you haven’t got your health, you haven’t got anything at all. Part A and Part B are significant health resources for many seniors, but Original Medicare alone doesn’t cover all healthcare costs. Outside of adding a Part D prescription drug plan and a Medicare Supplement plan to Original Medicare, a growing number of seniors are instead enrolling in Medicare Advantage (Part C).
However, this new GoHealth study of 1,000 Medicare Advantage beneficiaries and 1,000 Original Medicare beneficiaries shows an alarming difference in their knowledge of Medicare options. Of the 2,000 respondents polled, Original Medicare beneficiaries were less knowledgeable than Medicare Advantage beneficiaries in several areas.
78% of Medicare Advantage beneficiaries cite cost savings as a reason for their choice.
30% of Original Medicare beneficiaries believe Medicare Advantage is more expensive.
65% of Original Medicare beneficiaries don’t know that Medicare Advantage plans provide Part A and Part B coverage
86% of Original Medicare respondents believe Original Medicare alone provides out-of-pocket maximum (it does not)
Extra benefits are among the reasons 54% of Medicare Advantage beneficiaries chose their plan.
36% of Original Medicare respondents don’t know that Medicare Advantage has benefits Original Medicare does not offer.
For those enrolled in Medicare Advantage, there may even be a lack of engagement beyond first enrollment. While most people enroll in Medicare Advantage after their first enrollment in Part A and B, most will stay on that same plan — potentially leaving other options on the table that may be more health- and cost-effective.
3 in 5
3 in 5 immediately enrolled in a Medicare Advantage plan after they first enrolled in Part A and B.
7 in 10
7 in 10 have never switched Medicare Advantage plans. Among those who have switched, 3 in 4 made changes during Medicare’s Annual Enrollment Period.
One of the roles we play in the health ecosystem is to improve health and Medicare literacy, be a partner to our customers, and provide the right Medicare guidance. In addition to Medicare.gov, we are a trusted resource that puts valuable Medicare insight in the hands of our customers.
1 in 5 are concerned their Medicare Advantage plan doesn’t provide maximum cost savings.
Yet, more than half of those concerned do not know where to turn for help.