Baby Boomers Confused About Medicare According to National Survey

FOR IMMEDIATE RELEASE
August 25, 2008
Contact: Jason Moon  517-335-1700

LANSING – Today the Office of Financial and Insurance Regulation (OFIR) offered tips to retirees and seniors about their Medicare options. The first waves of baby boomers turn 62 this year and begin claiming Social Security benefits and according to a new national survey, many baby boomers are confused about their post-retirement health insurance options, including their Medicare eligibility.  

The National Association of Insurance Commissioners (NAIC) surveyed 377 baby boomers — Americans born between 1946 and 1964 — and found that only 36 percent correctly knew that Medicare eligibility begins at age 65. Twenty-one percent thought Medicare coverage began at age 62; 9 percent said age 67; 6 percent said age 59½; and 28 percent said they were unsure of the age.

“Clearly, there is some confusion and concern among baby boomers regarding their future access to Medicare,” said OFIR Commissioner Ken Ross. “This study demonstrates that we could all benefit from being better educated about when a person becomes eligible for Medicare in order to promote informed retirement decisions.”

The NAIC survey also found:

• A large majority of baby boomers — 84 percent — said that access to health insurance was important when choosing a retirement date.
• However, only 43 percent said that Medicare eligibility was an important factor in determining when they would retire.
• But nearly half — 48 percent — said they expected to use Medicare to cover their healthcare needs during retirement. This number increased to 57 percent among older baby boomers, those 55–62 years of age.

OFIR’s tips regarding Medicare options:

• If consumers have any questions regarding a Medicare Advantage plan they should first contact the Michigan Medicare Assistance Plan 800-803-7174 or http://www.mymmap.org/index.php
• Consumers should plan ahead for their retirement health insurance needs. Americans are eligible for Medicare at age 65, and should take this into consideration if they plan to retire at an earlier age.
• If consumers are 65 years of age or older and will be using Medicare as their primary health insurance, they should make sure they understand the different coverage options available to them. When enrolling, they will need to decide whether they want traditional Medicare or a Medicare Advantage plan. Before purchasing a Medicare Advantage plan, consumers should find out which hospitals and doctors are in-network.
• When enrolling in Medicare, consumers might want to consider purchasing a separate Medicare supplement (Medigap) insurance policy to pay for medical/hospital expenses and deductibles not covered by Medicare. Consumers can visit www.medicare.gov, for a list of approved Medicare supplement (Medigap) insurance providers.
• When choosing Medicare options, consumers might also want to consider enrolling in prescription drug coverage (Medicare Part D), which will help pay for the cost of medications prescribed by their doctor during treatment. If consumers choose to waive this coverage during enrollment, but enroll at a later date, they will pay a penalty fee.

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