Perceptions of Medicare

An interesting report published in NEJM revealed several public misconceptions regarding Medicare:

• more than 60% of respondents think that Medicare spending is rising faster in the last 5 years. In reality, it slowed.
• Only 53% of Americans correctly believed that Medicare is a one of the largest spending items of the federal budget. Only about 30% see Medicare as a major cause contributing to the federal deficit, and almost 25% think this is not a cause at all.
• Majority of public believes that Medicare recipients get benefits worth about the same (27%) or less than (41%) what they have paid in payroll taxes. In reality, on average Medicare beneficiaries paid $1 for every $3 they receive.
• despite the perception that Medicare spending is accelerating, the majority (except those in 18-29 yr group) oppose reductions in future spending on Medicare, and the older people get the more they oppose.
• Poor management by the government, fraud and abuse in health industry, and excessive charges by hospitals were identified as reasons most important why Medicare costs are rising. The cost of new drugs, tests, and treatments was the lowest ranking reason with only 6% identifying it as a cause responsible for Medicare spending.

The following finds are also instructive:

• The overwhelming majority (74%) recognizes Medicare as a federal government program.
• A similar proportion of public (72%) have very or somewhat favorable opinion of Medicare. Among those older than 65 yr, favorability is 88%.
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• Only 50% are aware that doctors are paid less by Medicare than by private insurers.
• Two-thirds were supportive of fee-for-service payments rather than a capitated model.
• And almost 60% won't vote for a candidate supporting major cuts to Medicare to reduce federal budget deficit.

There are rather large gaps between perceptions and facts.