Economic challenges for Medicare patients are becoming increasingly serious
A new report from KFF examines the financial and health care costs of Medicare beneficiaries. Although satisfaction with the program remains high, the challenges of paying for it remain.
Participants made huge, often heavy donations – including paid taxes, premiums and cost allocations. Many people face additional costs due to Medicare's lack of full coverage of critical services such as dental and long-term care.
Medicare families spend more on healthcare
These costs add up. Medicare households spend a larger share of health care than non-health care households, and more than one-third (36%) of beneficiaries who delay or skip care in 2023 due to affordability issues.
Medicare households spend a greater share of their total healthcare budget than non-medical households.
If the current trend continues, these expenses will only increase over time. KFF notes that the resulting cost burden will become increasingly severe due to the relatively low income of most beneficiaries and insufficient safety nets:
- Most beneficiaries have relatively low incomes. One quarter of Medicare beneficiaries live at $24,600 or less, while half (almost 33 million people) live at $43,200 or less.
- Many savings are limited. Savings of one quarter of beneficiaries are below $18,950; half are below $110,100.
- House value is also very small. One in four Medicare beneficiaries have no home equity at all. Half of the homes have net worth less than $128,200.
KFF found significant differences in age, race and race, and gender, including:
- Income and savings are usually lower for older, female, black or Hispanic beneficiaries with long-term disabilities under the age of 65.
- Almost half of Black and Hispanic beneficiaries have no home equity, and about one-fifth have no savings or are heavily in debt. By comparison, one in five white beneficiaries have no home equity, while less than one in ten have no savings or liabilities.
Recent legislation further threatens affordable care
These figures clearly indicate that most people with Medicare are unable to pay for more care. The recent settlement bill did not respond to this reality, but worsened it by cutting funding and other changes that would further limit access to affordable care.
Most people with Medicare can’t afford to pay more care.
The bill somewhat undermines admission rules for the Medicare Savings Program (MSP) that help qualified low-income beneficiaries pay for and use the Medicare coverage they earn. Without these modernizations, an estimated 1.3 million beneficiaries would not have significant cost assistance, putting their health and lives at risk.
Medicare Rights continue to strongly urge policymakers to support reforms that reflect beneficiary needs and financial reality to enhance coverage and affordability rather than harm it.
Read all KFF reports, revenues and assets for Medicare beneficiaries in 2024.
