Updated October 30, 2023
Key Findings
- Nearly two out of three Medicare beneficiaries agree Medicare is confusing and difficult to understand.
- Almost half (48.7%) of Medicare beneficiaries say Medicare doesn’t charge a deductible for inpatient care. More than half (54.2%) of beneficiaries don’t know this real deductible could be charged more than once in the same year.
- Nearly three in four beneficiaries (73.5%) don’t know some doctors are allowed to charge more than the Medicare predetermined amount for goods or services.
- 69.3% of beneficiaries don’t know Medicare covers hospice care, and 71.2% of beneficiaries don’t know Medicare covers inpatient and outpatient mental health treatment.
- Almost one in four beneficiaries (23.6%) incorrectly believe Original Medicare covers prescription medications.
- One in three beneficiaries (35.8%) don’t know Medicare covers an annual flu shot.
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Medicare is hard to understand, according to 64.6% of current beneficiaries. That’s just one of the many findings resulting from the MedicareAdvantage.com 2023 Medicare Literacy Survey. We surveyed 2,013 Medicare beneficiaries on their knowledge of costs, coverage, enrollment and more.
Majorities of Medicare beneficiaries don’t know their own coverage. This lack of understanding may be putting millions of older adults at risk.
High Number of Beneficiaries Don’t Know When Fall Open Enrollment Period Begins
More than one in four Medicare beneficiaries (26%) don’t know when the fall Medicare Open Enrollment Period starts. This enrollment period happens every year from October 15 to December 7.
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The finding is significant because the Medicare Open Enrollment Period is the only time of year most beneficiaries can make changes to their Medicare health plan and/or Medicare drug coverage.
With more than 66 million Medicare beneficiaries, this finding suggests roughly 17.2 million beneficiaries may be at risk of missing out on benefits changes or cost-saving measures they could take during this important enrollment period.
Misunderstanding Medicare May Lead to Unexpected Bills for Millions
Medicare Part A Deductibles
Medicare Part A charges a $1,600 ($1,632 in 2024) deductible when you’re admitted as an inpatient to a hospital or skilled nursing facility. This deductible isn’t annual, meaning a beneficiary could potentially have to pay this deductible more than once in a single year.
Nearly half (48.7%) of respondents selected the answer “There is no Medicare deductible for inpatient hospital care.” 44% know there is a deductible but thought it’s a lower amount than what it is.
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Only 7.4% of respondents know the correct amount of the Medicare inpatient care deductible.
54% of beneficiaries don’t know that the deductible can be charged more than once in the same calendar year. The Part A deductible operates not annually but rather on a “benefit period” basis. A hospital benefit period ends once a beneficiary stops getting any inpatient hospital care for 60 consecutive days.
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The lack of awareness about the Medicare Part A hospital deductible could lead to some unexpected bills for many beneficiaries who are admitted as inpatients.
Medicare Excess Charges
Almost three quarters (73.5%) of beneficiaries surveyed don’t know that some doctors who accept Medicare are allowed to charge a higher rate than Medicare’s predetermined amount. This is called an “excess charge” and gives certain health care providers the right to charge up to 15% more than the Medicare-approved amount.
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Many Beneficiaries May Miss Out on Benefits
The survey revealed that a high number of Medicare beneficiaries share a general lack of understanding about what Medicare does and does not cover.
For example, almost one in four beneficiaries think Original Medicare covers prescription drugs that can be filled at a pharmacy. That is not true (only private Medicare insurance plans can do so), and this type of misunderstanding could lead to some beneficiaries facing high drug costs and potential late enrollment penalties.
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Beneficiaries are also frequently unaware that particular services and items are covered by Medicare.
- More than one in four beneficiaries (26.6%) don’t know that Medicare covers an annual wellness visit.
- 70.9% of beneficiaries are unaware that Medicare covers walkers, wheelchairs and rollators.
- 71.2% of beneficiaries don’t know that Medicare covers mental health treatment and hospice care.
- More than one in three beneficiaries (35.8%) don’t know Medicare covers an annual flu shot.
Medicare Advantage Beneficiaries Are More Likely to Be Satisfied With Their Coverage
Beneficiaries who have a Medicare Advantage (Medicare Part C) plan are more likely than those with Original Medicare (Medicare Part A and Part B) to say their current coverage is better than the insurance they had prior to enrolling in Medicare.
Medicare Part C plans are provided by private insurance companies. They combine Original Medicare benefits into one single plan, and these private insurance plans can also provide more benefits that Original Medicare doesn’t cover.
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58.1% of people with a Medicare Advantage plan say their current coverage is better than what they had before enrolling in Medicare.
41.9% of people with Original Medicare say their Original Medicare coverage is better than the insurance they had before enrolling in Medicare.
23.7% of Original Medicare beneficiaries say their current coverage is worse than what they had before Medicare, which is nearly double the rate of Medicare Advantage beneficiaries who say the same about their coverage (12.3%).
Methodology and Data Notes
This survey was conducted September 26 through 30, 2023. Using an external survey tool, we collected complete surveys from 2,013 respondents aged 65 to 99 across all regions of the U.S.
Margin of error: +/- 2.228%
This survey relies on self-reported data.
Fair Use Statement
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Research and Reports
Our research reports analyze a number of issues important to seniors, from health perceptions, medical communication, health habits and more.
