Medicare Advantage beneficiaries experience more financial barriers than Medicare Supplement beneficiaries, despite similar satisfaction levels, according to a report by eHealth. The survey of 3,880 Medicare Advantage and Medicare Supplement beneficiaries found 89% of Medicare Advantage beneficiaries and 87% of Medicare Supplement beneficiaries were satisfied with their health plan coverage. The groups differed in their ability to cover out-of-pocket costs, and almost 40% of Medicare Advantage beneficiaries said they were worried about being unable to afford medical care, compared to 32% of Medicare Supplement beneficiaries who were worried about reductions to their benefits.
A recent report from eHealth has highlighted the financial barriers faced by Medicare Advantage beneficiaries in comparison to Medicare Supplement beneficiaries. The report, which surveyed 3,880 individuals enrolled in either a Medicare Advantage or Medicare Supplement plan, found that 89% of Medicare Advantage beneficiaries and 87% of Medicare Supplement beneficiaries were satisfied with their health plan coverage. The majority of beneficiaries, regardless of plan type, reported that their satisfaction had either remained the same or increased over the past year. However, despite similar satisfaction levels, the two groups experience different financial circumstances.
Medicare Advantage beneficiaries are more likely to have lower incomes than those enrolled in Medicare Supplement plans, with more than 70% of Medicare Advantage beneficiaries living on less than $50,000 per year. This is in contrast to Medicare Supplement beneficiaries, of whom 50% have an annual household income over $50,000. The difference in income levels means that Medicare Advantage beneficiaries face more financial barriers when it comes to affording healthcare. For instance, 52% of Medicare Advantage beneficiaries said they could only afford Medicare coverage without a monthly premium, and 18% can only afford a monthly premium of $25 or less. In contrast, 43% of Medicare Supplement beneficiaries said they can afford monthly premiums between $100 and $200, and 17% said they could afford more than $200 per month.
The two groups also differ in their ability to cover out-of-pocket costs. Just 37% of Medicare Advantage beneficiaries said they have enough savings to cover their maximum out-of-pocket costs if hospitalized, while 63% do not. Over half of beneficiaries (65%) said out-of-pocket costs higher than $1,000 are unaffordable. Among Medicare Supplement beneficiaries, 61% have enough savings to cover their maximum out-of-pocket costs and 39% do not. Fifty-eight percent of beneficiaries can afford $1,000 or more in out-of-pocket expenses; 22% can afford between $1,000 and $2,000, 18% can afford between $2,000 and $4,000, and 18% can afford more than $4,000. Just 16% of people with Medicare Supplement said they could not afford out-of-pocket costs higher than $250.
The top concern for Medicare Advantage beneficiaries is not being able to afford their medical care, with 39% voicing this concern. A smaller share (28%) are concerned about their Medicare benefits being reduced. The priorities are switched for Medicare Supplement beneficiaries, with 32% worried about their benefits being reduced and 27% concerned about being unable to afford their care in the future.
The report’s findings echo those of the Kaiser Family Foundation, which found that traditional Medicare beneficiaries with supplemental coverage experienced fewer cost-related hurdles compared to Medicare Advantage beneficiaries. While Medicare Advantage enrollment continues to grow and beneficiaries report high satisfaction, the report indicates that this population may experience more financial barriers to healthcare coverage than other Medicare beneficiaries.
Overall, the report highlights the importance of considering the financial circumstances of beneficiaries when it comes to selecting a Medicare plan. While Medicare Advantage may offer additional benefits, such as dental and vision coverage, the financial barriers faced by some beneficiaries may make traditional Medicare with supplemental coverage a more suitable option.
