A recent analysis by KFF sheds light on the financial pressures faced by individuals enrolled in Medicare. Despite high approval ratings for the program, many beneficiaries continue to struggle with out-of-pocket expenses and insufficient coverage for essential health services. n nParticipants contribute substantially through payroll taxes, monthly premiums, and shared medical costs. However, the absence of full coverage for critical needs such as dental care and long-term support creates additional financial strain. n nHouseholds relying on Medicare allocate a greater portion of their income to medical expenses compared to those not enrolled. In 2023, over one-third (36%) of enrollees reported postponing or forgoing treatment due to cost concerns. n nLooking ahead, these financial pressures are expected to intensify. The KFF report emphasizes that most beneficiaries operate within tight economic constraints, with limited backup resources: n nApproximately 25% of enrollees lived on $24,600 or less annually, while 50%—about 33 million people—had incomes at or below $43,200. n nSavings are similarly constrained: 25% had less than $18,950 in reserves, and half held less than $110,100. n nHome equity, often a key financial buffer, is also limited. One-quarter of beneficiaries owned no home equity, and 50% had equity valued under $128,200. n nThe data reveals disparities across demographic groups: n nOlder adults, women, Black and Hispanic individuals, and those under 65 with disabilities typically report lower income and fewer financial assets. n nClose to half of Black and Hispanic enrollees lack home equity, and about 20% have no savings or carry debt. In contrast, 20% of White beneficiaries lack equity, and fewer than 10% have no savings or are in debt. n nProposed legislative changes could deepen these challenges. The latest reconciliation bill includes funding reductions and policy adjustments that may restrict access to affordable care. Specifically, it rolls back improvements designed to simplify enrollment in Medicare Savings Programs (MSPs), which assist low-income individuals in accessing their entitled benefits. Without these updates, roughly 1.3 million people could lose critical financial support, endangering both health outcomes and economic stability. n nThe Medicare Rights Center urges lawmakers to prioritize reforms that enhance affordability and expand coverage, aligning policy decisions with the real-world circumstances of enrollees. n— news from Medicare Rights Center
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Growing Economic Challenges for People with Medicare
A new report from KFF examines Medicare beneficiary finances and health care costs. While satisfaction with the program remains high, challenges paying for it persist. n nEnrollees make significant, often burdensome contributions—including paying payroll taxes, premiums, and cost sharing. Many face additional costs due to Medicare’s lack of comprehensive coverage for critical services like dental and long-term care. n nMedicare Households Spend More on Health Care n nThese costs add up. Medicare households spend a larger share of their total budgets on health care than non-Medicare households, and more than one-third (36%) of beneficiaries delayed or skipped care in 2023 due to affordability concerns. n nIf current trends persist, these expenses will only grow over time. KFF notes the resulting cost burdens would become increasingly acute, as most beneficiaries have relatively low incomes and inadequate safety nets: n nMost beneficiaries have relatively low incomes. One in four Medicare beneficiaries lived on $24,600 or less, while half—nearly 33 million people—lived on $43,200 or less. n nMany have limited savings. One quarter of beneficiaries had savings below $18,950; half had savings below $110,100. n nHome equity is also scarce. One in four Medicare beneficiaries had no home equity at all; half had home equity below $128,200. n nKFF found notable differences by age, race and ethnicity, and gender, including: n nIncome and savings were generally lower for beneficiaries who were older, female, Black or Hispanic, as well as those under 65 with long-term disabilities. n nNearly half of all Black and Hispanic beneficiaries had no home equity and roughly one in five had no savings or were in debt. By contrast, one in five White beneficiaries had no home equity, and fewer than one in ten had no savings or were in debt. n nRecent Legislation Further Threatens Affordability of Care n nAs these numbers make clear, most people with Medicare cannot afford to pay more for care. Instead of responding to this reality, the recent reconciliation bill threatens to worsen it, through funding cuts and other changes that will further restrict access to affordable care. n nIn part, the bill undermines rules easing enrollment into the Medicare Savings Programs (MSPs), which help qualifying low-income beneficiaries pay for and use their earned Medicare coverage. Without these modernizations in place, an estimated 1.3 million beneficiaries will go without vital cost assistance, putting their health and lives at risk. n nMedicare Rights continues to strongly urge policymakers to instead champion reforms that reflect beneficiary needs and financial realities—to bolster coverage and affordability, rather than jeopardize it.