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The NAIC's national survey of 377 baby boomers -- Americans born between1946 and 1964 -- found that only 36 percent correctly knew that Medicareeligibility begins at age 65. Twenty-one percent thought Medicare coveragebegan at age 62; 9 percent said age 67; 6 percent said age 59 1/2; and 28percent said they were unsure of the age.
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The NAIC survey also revealed a considerable lack of familiarity withMedicare's coverage options. Sixty-six percent of respondents said they were"not very familiar" or "not at all familiar" with options such as MedicarePart B, Medicare Advantage plans, Medicare prescription drug coverage andMedicare supplement (Medigap) insurance. This number jumped to 72 percentamong younger baby boomers, those 44-54 years of age.
A high level of concern about Medicare's viability also added to theconfusion. Eighty-two percent of those surveyed said they were concerned thatfuture funding for Medicare might not be sufficient to provide the healthcareservices they anticipate needing throughout their retirement.
"Clearly, there is much confusion and concern among baby boomers regardingtheir future access to Medicare," said NAIC President and Kansas InsuranceCommissioner Sandy Praeger. "Many boomers incorrectly think Medicare coverageis available at age 62, when they initially become eligible for SocialSecurity benefits. With growing concerns about health insurance costs andaccess, these aging members of our society need to be better educated aboutMedicare's timing and entitlements so that they can make informed retirementdecisions."
The NAIC offers tips and considerations through its public educationprogram, Insure U - Get Smart About Insurance, at www.insureUonline.org.
Understanding the Basics of Medicare
Medicare is the largest health insurance program in the nation, coveringmore than 40 million Americans. The federally funded program is available toAmericans 65 years of age and older, regardless of their eligibility forSocial Security retirement benefits.
Some Americans younger than 65 may qualify for Medicare, depending ontheir physical health. For example, those who are disabled may be eligiblebefore reaching their 65th birthday.
Medicare is divided into four parts, each with different coverage options,including hospital insurance (Part A), medical insurance (Part B), MedicareAdvantage (Part C) and prescription drug coverage (Part D). Although manyAmericans do not pay a monthly premium for Medicare Part A, individualsseeking additional coverage options under Parts B, C and D typically pay amonthly premium.
"Baby boomers need to get smart about their health insurance needs whenplanning for retirement," said NAIC Executive Vice President and CEO CatherineJ. Weatherford. "Consumers should take the time to familiarize themselves withMedicare by visiting the federal government's Web site, www.medicare.gov. Wealso encourage baby boomers to visit the NAIC's Insure U Web site,www.insureUonline.org, to get additional information on their health insuranceneeds."
ABOUT THE NAIC
Headquartered in Kansas City, Missouri, the National Association ofInsurance Commissioners (NAIC) is a voluntary organization of the chiefinsurance regulatory officials of the 50 states, the District of Columbia andfive U.S. territories. The NAIC's overriding objective is to assist stateinsurance regulators in protecting consumers and helping maintain thefinancial stability of the insurance industry by offering financial,actuarial, legal, computer, research, market cond
