Baby Boomers Confused About Medicare
The first wave of baby boomers turn 62 this year and will begin claiming Social Security benefits. And, according to new research from the National Association of Insurance Commissioners (NAIC), many are confused about their post-retirement health insurance options, including their Medicare eligibility.The NAIC’s national survey of 377 baby boomers — Americans born between 1946 and 1964 — 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.
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. However, 48 percent said they expected to use Medicare to cover their health care needs during retirement. This number increased to 57 percent among older baby boomers, those 55 to 62 years of age.
In addition to these findings, the NAIC survey revealed a considerable lack of familiarity with Medicare’s coverage options. Sixty-six percent of respondents said they were “not very familiar” or “not at all familiar” with options such as Medicare Part B, Medicare Advantage plans, Medicare prescription drug coverage, and Medicare supplement (Medigap) insurance.
This number jumped to 72 percent among younger baby boomers, those 44 to 54 years of age.
A high level of concern about Medicare’s viability also added to the confusion. Eighty-two percent of those surveyed said they were concerned that future funding for Medicare might not be sufficient to provide the health care services they anticipate needing throughout their retirement.