Common Medicare Misconceptions

With all the information out there about Medicare Benefits, it’s easy to be confused, or even misinformed. It’s vital for those who are eligible for Medicare to understand the details about this long-standing, much needed program. The following are a few common Medicare misconceptions and the facts recipients need to set them straight.

Myth #1: Medicare Covers Everything

It is possible for Medicare recipients to piece together coverage that will imitate employer-sponsored health insurance, however there are differences in coverage depending on whether you have Medicare A, B, or D. For example, Part A pays for in-patient hospitalization or skilled nursing, but only after a deductible has been met, and only if the hospitalization requires staying for “two midnights.” Most people are automatically enrolled in Medicare Part B, which covers outpatient healthcare costs.  Please see our previous blog post describing the features of each.

Myth #2: Medicare is Going Bankrupt

There have been significant concerns about this, especially with the progression of the ACA. The belief is that since more employees will retire than join the labor force in the coming decades while healthcare costs increase, the amount of money in the Hospital Insurance Trust Fund is expected to peak in 2019 and then drop from $204 billion to $124 billion by 2025. Rather than being Medicare’s undoing, however, healthcare experts believe that the change will be in how Medicare Part A pays for healthcare services, or in payroll taxes.

Myth #3: Medicare is Unnecessary

Medicare is expected to remain a critical program for retirees as baby boomers are living longer and the costs of healthcare continue to climb. Medicare is needed to protect the financial security of millions of senior citizens.

The Future

Regardless of what happens with Medicare, it’s essential that working individuals take the necessary steps to prepare a retirement plan with a savings target that considers their personal and family health history. It’s equally important to factor in the costs associated with Part B and Part D coverage, deductibles, and potential out-of-pocket healthcare expenses.

As we’ve mentioned previously, medical expenses can be astronomical.  If the correct insurance is not in place with sufficient coverage, costs may surprise and overwhelm you.  Not following the eligibility requirements could result in surprise penalties and permanent costs from Medicare.  Call Omaha Insurance Solutions at 402-614-3389 or email us at info@OmahaInsuranceSolutions.com for a free consultation.

What Our Clients Are Saying About Omaha Insurance Solutions

Tom V.

I was very impressed with the knowledge Chris has of the Medicare system. He explained the different options available to me thoroughly and overall, the process went very well. I would recommend Chris without hesitation to anyone trying to make decisions in regard to Medicare.

George & Maxine I.

My wife is getting ready to retire and She was getting so frustrated with all the agents just wanting to sell their companies’ plans. I went to Chris when I retired so I gave him a call to set up an appointment for my wife. Chris took the time to present all retirement plans. he explained all the pros and cons of each plan and let us decide on the plan that best suited her needs. My wife, Maxine, was very happy with the choices Chris presented & explained and put her at ease about the plan choice. Chris and his team are Very Very good and we will recommend Omaha Insurance Solutions to anyone who is getting ready to retire. Chris and his team do an excellent job of getting through the Medicare Mayhem!

Judy M.

I was referred to Chris by my financial advisor. I met with 2 other agents who just wanted to sell me ‘their’ plan. Chris took the time to explain the Medicare Advantage plans and the supplements with all their ‘letters’. He gave me peace of mind, knowing that I will probably have the best health insurance coverage I’ve ever had. I thank Chris for being a big part of this first chapter in my retirement!