At a life stage where having a clear understanding of healthcare is critical, nearly seven in 10 Medicare beneficiaries agree that Medicare insurance is confusing and difficult to understand. That’s according to a new Medicare literacy survey poll of 1,000 Medicare beneficiaries by MedicareAdvantage.com.
Many of the respondents did not seem to understand basic insurance-related terms. Fully 56% of respondents incorrectly answered the question “what is a deductible?,” whereas 69% failed to correctly define the term “coinsurance.”
Additional responses indicated that many older adults don’t fully understand basic Medicare coverage and potential out-of-pocket expenses. For example, more than 70% of respondents incorrectly believed that Medicare will notify them if they are not automatically enrolled. Further, some seniors may approach Medicare age or even be already enrolled in Medicare before they realize just how limited Medicare’s long-term care coverage can be, said Christian Worstell, the study’s author and a Medicare expert.
“It’s vitally important that Medicare beneficiaries – and all insurance beneficiaries for that matter – clearly understand their coverage and how it fits with their expected healthcare needs and budget,” Worstell told McKnight’s Business Daily.