5 Medicare Myths

5 Top Medicare Myths Debunked! 

There's always a lot of discussion about Medicare and what it covers, what it does not cover, and what additional coverage you may need to ensure you're adequately insured and not draining your finances.

We're debunking some of the top Medicare myths today with a little game of True or False...

1. Medicare is FREE! -FALSE 🚫

You've heard the saying "nothing in life is free", right? Well, that also applies to Medicare. Medicare is not free.  Medicare Part A does not have a premium if you or your spouse have worked 40+ quarters in your life and contributed to Medicare taxes.  However, though you do not have a premium once enrolled, you did pay for Medicare Part A while you were still working through your contribution to Medicare taxes.  There is a premium associated with Medicare Part B.  The Medicare Part B is based upon your income.  The average Part B income for 2023 is $164.90/month.  

2. Medicare covers all hospital, medical and prescription drug costs. -FALSE 🚫

We know this one seems fairly easy, but we want to reiterate that Medicare does not cover all hospital, medical and prescription drug costs.  Original Medicare (Part A & Part B) only cover 80% of all hospital and medical costs leaving you on the hook for the remaining 20% + prescription drug costs.  Also, there is no limit to the 20% you are exposed to! 20% of a hip replacement or chronic illness can wreak havoc financially and derail your retirement plans.

💡Savvy Medicare Tip -Purchase a Medicare Supplement Plan + Prescription Drug Plan or Medicare Advantage Plan to help cover that remaining 20% plus prescription drug costs. 

3.  Medicare does not cover long-term care. -TRUE  👍

Original Medicare (Part A & Part B) does not cover long-term care.  It covers short-term skilled nursing & hospice, but it does not cover long-term care.  Over 50% of those individuals turning 65 this year will need long-term care in their life.  The average cost of a semi-private room in a nursing home is over $90,000 and the average length of stay in a long-term care facility is 3 years.  🤯

💡Savvy Medicare Tip- After looking at those stats, it's safe to say you need a strategy in place to finance long-term care in the event you need it.  Consider a life insurance policy with a long-term care rider from Erie Family Life Insurance. 

Statistics from Statistics from https://www.seniorliving.org/nursing-homes/costs/

4. Enrollment in Medicare is automatic upon my 65th birthday - FALSE 🚫

Enrollment in Medicare is not automatic unless you are already collecting Social Security.  If you are not collecting Social Security as you approach your 65th birthday you will have to enroll yourself in Medicare by visiting the Social Security website or making an appointment at your local Social Security office.  You are able to apply for Medicare as early as 3 months prior to your 65th birthday.  Your Initial Enrollment Period (IEP) is 3 months prior to your 65th birthday, the month of your 65th birthday and 3 months after your 65th birthday.  If you are continuing to work and carrying creditable coverage through an employer plan you can enroll in Medicare Part A during this time and defer Part B until you are ready to retire or are losing group coverage.  

5. You don't need to evaluate your coverage annually.  -FALSE 🚫

You should always make time to evaluate your coverage on an annual basis.  Insurance carriers make changes and introduce new plans to the market every fall that take effect January 1st of the next calendar year.  Set aside time to meet with an independent licensed agent  to review the changes in your current plan, changes in your health, prescription drug needs, income, lifestyle as well as to evaluate new plans that were introduced to the market.  

💡Savvy Medicare Tip- Doing an annual review can help make sure you're not overpaying for your coverage or that there is not a better plan for your needs.

We know the world of Medicare can be a confusing and complex world to navigate. Let us help with all of your Medicare needs from questions about enrolling in Original Medicare to selecting your secondary coverage plan. We offer FREE, no-obligation Medicare consultations. Contact 814.201.9708 or jocelyn@evolveinsurancegrp.com for more information or to schedule your consultation.

Jocelyn Wolf