Many financial professionals lack a basic understanding about Medicare, according to the results of a 10-question Medicare literacy quiz that insurer Protective gave to 501 financial professionals in October.
The survey revealed that 68% of the financial professionals who participated were unaware of Medicare coverage holes that could expose older clients to unlimited financial losses.
Protective also gave the same quiz to 1,210 consumers ages 55 through 75 who had at least $200,000 in investable assets and were eligible for Medicare benefits.
What it means: Two-thirds of the people who could be described as retirement advisors would likely benefit from better familiarity with Medicare.
The quiz: The advisors, life and annuity agents, and other professionals who took the Protective quiz all had at least three years of industry experience.
The financial professionals said they earned at least one-fourth of their income providing investment and financial planning advice and told Protective that they received at least 30% of their income from clients ages 55 through 75.
The financial professionals earned an average score of 60% on the Protective Medicare literacy quiz. That average score compared with an average score of just 40% for the consumers who took the quiz.
But only 52% of the financial professionals who took the quiz knew that enrollees in a Medicare Advantage plan may not have access to all doctors who accept Medicare.
Just 51% knew that a retiree cannot have a Medicare Advantage plan and a Medicare supplement insurance policy, or Medigap policy at the same time.
And only 32% of the financial professionals knew that there is no annual out-of-pocket maximum for enrollees with only Original Medicare coverage.
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