Toni….I have been following your “Toni Says” facebook page and last week you had a chart discussing different myths of Medicare. It seems I am just as confused as those taking the survey.
Can you explain the myths on the survey? Thanks, Fred from Sugar Land, TX
Hello Fred:
eHealth Insurance surveyed 1,055 baby boomers before the 2012 Presidential election and boy…were there some misguided boomers.
Below is a list of the Medicare myths from that survey:
- Myth #1: Most baby boomers think Medicare is just like regular health insurance plans…FALSE!! Only 2 in 5 or 40% of the baby boomers surveyed know that Medicare is totally different than traditional group or individual health insurance. Medicare has 2 Parts A & B. Part A has a $1,184 deductible 6 times a year for an in hospital stay. Part B of Medicare includes doctor’s services such as office visits and doctor performing surgery, outpatient services and surgery, scans, x-rays, chemotherapy and radiation, and the list goes on. There is a 1 time deductible for Part B of $147.00 once a year with Medicare picking up 80% and you pay 20% of the Medicare approved amount with no co-insurance or stopping. Not like the typical 80/20 to $5,000 with a stop lost. The 20% just keeps on going!! Toni Says: Medicare is completely different than health insurance. Your out of pocket can be huge if you only have Medicare or the red, white and blue card. Learn what Medicare offers.
- Myth #2: Medicare is free…FALSE!! 70% of those turning 65 that were surveyed knew that this was false. The Medicare payroll tax is for Part A only! Part B has a premium which is means tested due to income. 90% of those on Medicare are paying $104.90 each month for Part B, but there are 10% that meets the means tested income amount and has to pay more than $104.90 each month. If one does not pay for Part B, then they have NONE of the benefits that Part B offers. This is very important to know. Toni Says: Nothing is free!! You worked and paid taxes into the Social Security system.
- Myth #3… A person can enroll in Medicare any time after they’re 65 without penalty…FALSE!! This idea is absolutely wrong. If you are not working fulltime for a company with true group benefits and wait later than 65 years old and 90 days to enroll in Part B, then you can receive a penalty of 10% for each 12 month period or year that you did not enroll in Part B. That penalty lasts for the rest of your life. You don’t get to pick when you can enroll in Medicare or Parts A and/or B if you are not working fulltime for a company with true benefits. ALWAYS talk to you HR department or social security before you are thinking of denying Parts A and/or B. Toni Says: If you or your spouse is not working fulltime with true company benefits be sure to enrolling in Parts A and B by the time you turn 65. Wait 90 days past turning 65 and you will get a penalty!
- Myth #4… Medicare covers everything. FALSE Most baby boomers are surprised to find out that Medicare does not cover routine dental care, dentures, cosmetic surgery, exams for hearing or hear aids and acupuncture. Medicare only covers what is medically necessary. Big surprise for those who are leaving true group benefits and find out Medicare does not cover everything like their old group health plan did.
Toni Says: Remember Medicare will only pay for medical expenses and if Medicare doesn’t pay, then your Medicare supplement or Medicare Advantage plan will not pay either.
Follow me at “Toni King Says” on facebook and add Toni Says to your “like” pages. Trying to help as many as possible…Toni
Toni King is an advocate/consultant for those “Confused about Medicare”. Email questions toni@tonisays.com or call 832/519-TONI (8664). Her book Medicare Survival Guide is available at www.tonisays.com.
