After paying into Medicare through payroll withholding for many years, you might think your coverage will be free once you turn 65.
In reality, the national health insurance program comes with a variety of expenses — including premiums, copays and deductibles. High earners pay more and there’s no out-of-pocket maximum.
“I’d say a full third of people we talk to, who are just starting to do their research, are surprised — some are appalled and flabbergasted — that they have to pay anything for Medicare,” said Danielle Roberts, co-founder of insurance firm Boomer Benefits in Fort Worth, Texas.
“The ‘Medicare for all’ conversation might contribute to that, because consumers hear ‘free, free, free’ and assume Medicare is already free,” she said.
Similarly, half of respondents in a recent poll by consumer website Eligibility.com said they believe Medicare is free.