5 Reasons You’ll Love Medicare

As you inch closer to age 65 and Medicare eligibility, you might be asking, "Is Medicare really worth it?" (Hint: It truly is!)

Medicare occasionally faces its share of criticism. Some point to challenges with prescription medication costs, or the notorious "donut hole," and others highlight gaps in long-term care coverage. But here's an illuminating fact: A vast majority of Americans actually appreciate (and love!) Medicare. A recent study indicated that nearly 90% of beneficiaries are pleased with their healthcare services and content with the range of coverage options available to them. This is in contrast to approximately 80% of employees who express satisfaction with their workplace health plans.

It’s important to look at Medicare with an open and informed perspective. True, the plan and coverage you select might differ from what you had with your employer or union. However, Medicare offers numerous advantages that perhaps weren't available with your prior insurance. Let’s dive into these five reasons why most people love Medicare.

1. Medicare Premiums Cost Less than Private Health Insurance

The vast majority of individuals can benefit from premium-free Part A, which means for Original Medicare coverage, you're typically just paying your Part B premium. In 2023, the Part B premium stands at $164.90. Compare this with the average monthly premium for private health insurance for a healthy individual in their 40s, which is around $495. That's a notable difference of over $250 each month.

What's more, the growth rate of Medicare premiums is relatively steadier compared to private health insurance plans. This is because they're generally linked to the inflation rate. On the other hand, private insurers have to account for a plethora of factors like claims, the larger economic landscape, multiple regulations at various government levels, and even potential litigations when determining their premiums. To put this in perspective: since 2013, the premiums for private insurance surged by an astounding 123%, whereas Part B premiums saw a more modest rise of roughly 25%, translating to about an additional $30 monthly.

But wait, there's more upbeat news for those considering Medicare: The premiums for both Medicare Advantage and the Medicare Part D Prescription Drug Plans have been on a downward trajectory. Astonishingly, a large segment of beneficiaries paid less in premiums in 2021 than what they did in the preceding year. How often can we claim the same for private insurance options?

2. Financial Assistance for Healthcare Costs

Understanding that Medicare is the primary healthcare option for numerous seniors, the government has instituted various measures to ensure its affordability for individuals with constrained budgets. Numerous state and federal initiatives exist that assist in covering Part B premiums, not to mention other expenses like deductibles, copayments, and coinsurance fees. Even the Part D prescription plan includes provisions for financial assistance based on income, ensuring more affordable access to medications.

For those eligible for both Medicare and Medicaid, there are specialized Medicare Advantage plans available. These plans cater to all health requirements, encompassing prescription medications, often with zero monthly premium charges.

3. Lots of Choices

Under the umbrella of employer-provided insurance, your hands are often tied. You're usually confined to the healthcare plan your employer offers, even if it doesn’t ideally align with your needs or preferences.

Medicare, however, paints a much brighter picture. While a large portion of beneficiaries opt for Original Medicare, an impressive 35% gravitate towards Medicare Advantage, with a choice of an average of 33 distinct plans. This means you’re empowered to make choices based on your unique needs and not merely accepting a one-size-fits-all solution.

But here's the icing on the cake: Should you ever find that your chosen coverage isn't fitting the bill, you're not tethered to it indefinitely. Every fall, during the Annual Election Period, you’re given a window to reassess and revamp your coverage. Additionally, for those on Medicare Advantage, the beginning of the year provides a secondary opportunity to refine plan selections.

4. Predictable Healthcare Costs

Medicare costs can be extremely predictable, depending on the type of coverage you use. We’ll look at both options, each with different types of predictable costs.

Medigap 

Navigating through Original Medicare can sometimes feel like treading in murky waters. There's the looming unpredictability of limitless out-of-pocket expenses stemming from deductibles, copayments, and coinsurance fees. However, Medigap plans bring clarity to this scenario. By opting for Medigap, you can experience nearly full coverage on all healthcare expenses, ensuring minimal outlays when seeking medical attention.

While 2020 witnessed a tweak in Medigap policies, resulting in the phasing out of Plan C and Plan F (which used to cover the Part B deductible), those who secured these plans before January 1, 2020, can retain them. Post that cutoff, Plan G emerges as a comprehensive alternative, though it requires beneficiaries to manage the Part B deductible, which is set at $226 for 2023.

Medicare Advantage 

Medicare Advantage is another avenue to effectively manage and predict healthcare expenses. Unlike the dual deductible system in Original Medicare (one for Part A and another for Part B), most Medicare Advantage plans streamline this by either having a singular deductible or, in some cases, no deductible at all. Instead of juggling varying percentage-based fees as with Part B, the structure here is usually a fixed copayment.

A major selling point of Medicare Advantage is the federally mandated out-of-pocket maximum cap implemented annually. Still, many plans voluntarily set their thresholds even lower than this mandated cap. The upshot? Beneficiaries are cushioned with a financial safety net, ensuring they don't exceed a certain limit in healthcare expenses, regardless of the amount of medical care required.

5. New Benefits to Stay Healthy

Medicare, whether in its Original or Advantage format, is a robust advocate for preventive care. The program consistently evaluates and refines its wellness and preventive care recommendations to ensure beneficiaries have uninterrupted access to essential screenings, examinations, and vaccinations to maintain optimal health.

The Centers for Medicare and Medicaid Services (CMS) hasn't just stopped there when it comes to Medicare Advantage plans. They've introduced an array of innovative benefits tailored to ensure seniors not only remain healthy but also feel safe and retain their independence within their homes. These forward-thinking benefits encompass a broad spectrum of services such as extended telehealth provisions, transportation services not strictly medical in nature, doorstep meal delivery, comprehensive home health services including custodial care and aid in household chores, as well as allocations for home safety tools and devices. They've even taken into consideration the immense value of caregivers by introducing benefits like respite care.

Get Help with Medicare

It's easy to get swayed by critics voicing concerns about Medicare. While it may differ from your prior employer-provided coverage, in numerous aspects, it's likely to surpass expectations.

If you're feeling uncertain about charting your Medicare journey or determining the best-suited plan, don't fret. Our dedicated team of Medicare specialists at Local Medicare Specialists stands ready to offer impartial insights into top-tier plans, paired with unrivaled, enduring support throughout your policy's tenure.