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.
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 [email protected] for a free consultation.