CHICAGO, Feb. 25, 2021 /PRNewswire/ -- While Medicare
Advantage enrollment across the country is higher than it has ever
been, a recent survey of Medicare beneficiaries by GoHealth
(Nasdaq:GOCO) showed that general awareness of the plan and its
options is not keeping pace. And though the Centers for Medicare
and Medicaid Services (CMS) project a record-breaking 26.9 million
Medicare Advantage enrollees in 2021, that only represents 42% of
all beneficiaries. That could mean millions more Americans may miss
out simply due to a lack of knowledge and awareness around the full
menu of Medicare, from Medicare Supplement and Part D, to Medicare
Advantage.
65% of Original Medicare
beneficiaries do not know that Medicare Advantage plans provide
Part A and Part B coverage.
Only 18% of Original Medicare
beneficiaries are 'very familiar' with Medicare Advantage
plans.
31% of Original Medicare
beneficiaries are unsure if Medicare Advantage and Medigap are the
same thing.
"Such misconceptions can be harmful if they cause a person not
to seek out the coverage and care they need," said GoHealth Chief
Medical Officer, Paul Hain, MD.
"We've always aimed to educate our customers first," said Hain.
"For many people, we're their only point of contact regarding
Medicare and how it works. Clearing up misconceptions and providing
helpful information has always been at the forefront of what we do.
However, we are starting to see just how negatively those
misconceptions can affect the average Medicare-aged American. How
can we help the 21% who have never reviewed their plan, or the 11%
who only do so every few years?"
GoHealth commissioned 2,000 online interviews between Jan. 21 and Jan. 26, 2021. All
respondents were U.S. citizens aged 65 and older, split evenly
between Original Medicare enrollees (1,000 respondents) and
Medicare Advantage enrollees (1,000).
Key Findings: Original Medicare Enrollees
A significant group impacted by this knowledge gap appears to be
Original Medicare enrollees. These respondents demonstrate low
awareness and utilization of options beyond Part A and Part B.
In addition, their answers reflect misconceptions about Medicare
Advantage plans.
- 40% of Original Medicare beneficiaries weren't also enrolled in
either a Medicare Supplement or Part D plan, or weren't sure.
- 36% of Original Medicare beneficiaries do not know that
Medicare Advantage has benefits Original Medicare does not
offer.
- 35% of Original Medicare beneficiaries will not switch to
Medicare Advantage because they fear losing their coverage.
- 62% believe that Medicare Advantage plans can change without
informing the beneficiary.
- In all, just 18% of Original Medicare enrollees said they were
"very familiar" with Medicare Advantage; 30% are either unsure or
not at all familiar with Part C plans.
- 30% of those with Original Medicare believe Medicare Advantage
is more expensive, even though 78% of Part C enrollees cited at
least one cost savings as a reason for their choice.
Even worse, this lack of Medicare knowledge could have lasting
impacts on their futures:
- 86% incorrectly believe their Original Medicare plans have
out-of-pocket maximums, which without a supplemental plan could
leave them susceptible to high financial costs.
- 53% falsely believe their Original Medicare covers long-term
care, which may set them up for a costly disappointment if a
serious medical issue arises.
Key Findings: Medicare Advantage Beneficiaries
While Medicare Advantage enrollees seem to be more knowledgeable
about Part C in general, engagement with their plans often ends
when they enroll in Medicare Advantage.
- 61% immediately enrolled in Medicare Advantage when they were
first eligible for Medicare Parts A and B
- 70% of Medicare Advantage enrollees have never switched to
another Part C plan
Why does this matter? This kind of plan "loyalty" may point to a
lack of engagement in their policy. While they may have taken the
extra steps to learn about and enroll in a Medicare Advantage plan
in the past, the same plan beyond year one may not be the most
health- or cost-effective option available to them as their health
needs, provider networks and circumstances change.
Perhaps most telling is that 19% of respondents with Medicare
Advantage worry they are not getting maximum cost savings from
their plans, and 53% of them are not aware of any resources to help
find the answers they need.
"The fact that so many people don't know whom to ask when they
have questions, to me, was startling," said Hain. "It's clear that
while Medicare Advantage enrollment is growing each year, there's
still a sizable gap in what the average American knows about it.
That also extends to those in Original Medicare who don't know they
may have better options available."
For more insights, or to check out the full report, "How
Confusing Is Medicare for Seniors?" visit
https://www.gohealth.com/a-new-gohealth-study-reports-older-americans-are-familiar-with-original-medicare-but-lack-awareness-understanding-of-the-alternative-option/.
About GoHealth, Inc.
As a leading health insurance marketplace and
Medicare-focused digital health company, GoHealth's mission is to
improve access to healthcare in America. Enrolling in a health
insurance plan can be confusing for customers, and the seemingly
small differences between plans can lead to significant
out-of-pocket costs or lack of access to critical medicines and
even providers. GoHealth combines cutting-edge technology, data
science and deep industry expertise to match customers with the
healthcare policy and carrier that is right for them. Since its
inception, GoHealth has enrolled millions of people in Medicare and
individual and family plans. For more information, visit
https://www.gohealth.com/.
Contacts:
- Investor Relations, IR@gohealth.com
- Media Relations, pressinquiries@gohealth.com
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SOURCE GoHealth, Inc.