Study Finds Alarming Number of Boomers Lack Basic Understanding of Medicare Program

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Study Finds Alarming Number of Boomers Lack Basic Understanding of

Medicare Program

CHICAGO, Feb. 27, 2012 /PRNewswire/ — More than half (56 percent) of

America's middle-income Boomers admit to knowing little or almost

nothing about the Medicare program and one in seven (13 percent)

falsely believe Medicare is free, the latest study released by the

Bankers Life and Casualty Company Center for a Secure Retirement (SM)

(CSR) reveals.

The CSR's Retirement Healthcare for Middle-Income Americans study of

400 pre-Medicare Boomers (age 47 to 64) and 400 older adults (age 65

to 75) with income between $25,000 and $75,000, found that nearly

three-fourths (72 percent) of Boomers did not know that most Americans

on Medicare pay a monthly premium, co-pays and deductibles.

Moreover, two thirds (62 percent) of Boomers, even those within a few

years of turning 65, do not understand what their health insurance

benefit will be for doctor visits and hospitalization once they are on

Medicare. And more than one-quarter (27 percent) could not venture a

guess on how much they think they will pay for healthcare once on

Medicare versus what they pay today.

Although Boomers cite uncovered healthcare expenses (80 percent) and

becoming ill (74 percent) as their top financial concerns about

retirement, many appear to be taking a "learn as you go" approach to

understanding Medicare's coverage and costs- waiting until they are

using the program to investigate how it works.

According to the CSR study, most pre-Medicare age Boomers do not

understand their benefits for dental care (78 percent), hearing care

(82 percent) and vision care (83 percent), all which are services

typically not covered by Medicare.

In addition, eight in ten (86 percent) Boomers under age 65 do not

know if Medicare covers long-term care or overestimate its long-term

care coverage. Boomers nearing Medicare eligibility (age 60 to 64) do

not show a significantly greater understanding than those ages 47 to

59.

For many Boomers, retirement waits for Medicare. Boomers under age 65

are taking Medicare eligibility into consideration in greater numbers

when determining when to retire. Nearly half (45 percent) of working

Boomers age 47 to 64 report they are waiting to retire until they are

eligible for Medicare and one-fourth (24 percent) are still not

decided if they would retire without the safety net of Medicare's

health benefits.

The decision to wait to retire until they are eligible for Medicare

may be financially sound since medical bills are one of the leading

causes of bankruptcy among people age 65 and older. The CSR study

reports one in ten (12 percent) of middle-income Americans on Medicare

are living with medical debt.

"Minimize financial surprises by understanding your retiree health

insurance benefits well in advance," said Chris Campbell, vice

president of strategic marketing and business development for Bankers

Life and Casualty Company, a national life and health insurer.

"Estimate what your financial responsibility is under Medicare,

including premiums, co-pays, deductibles and uncovered expenses, in

particular, long-term care. Earmark a portion of your savings or

income for retirement and consider speaking to a professional advisor

who is well-versed in Medicare for guidance."

Methodology

The Bankers Life and Casualty Company Center for a Secure Retirement's

study Retirement Healthcare for Middle-Income Americans was conducted

in September 2011 by the independent research firm The Blackstone

Group. The complete report can be viewed at

http://www.CenterForASecureRetirement.com

About the Center for a Secure Retirement

The Bankers Life and Casualty Company Center for a Secure Retirement

is the Company's research and consumer education program. Its studies

and consumer awareness campaigns provide insight and practical advice

for how everyday Americans can achieve financial security during

retirement.

Established in 1879 in Chicago, Bankers Life and Casualty Company

focuses on the insurance needs of the retirement market. The

nationwide company, a subsidiary of CNO Financial Group, Inc. (NYSE:

CNO), offers a broad portfolio of life and health insurance retirement

products designed especially for Boomers and retirees.

SOURCE Center for a Secure Retirement

-0- 02/27/2012

/CONTACT: Jennifer Born, Bankers Life and Casualty Company, +1-312-396-7089, J.born@banklife.com

/Web Site: http://www.CenterForASecureRetirement.com

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CO: Center for a Secure Retirement; Bankers Life and Casualty Company; CNO Financial Group, Inc.

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