Six Overlooked Medicare Benefits That Can Save Seniors Thousands

Medicare is a critical component of healthcare for seniors in the United States, yet many beneficiaries are unaware of the full range of benefits available to them. Family caregivers often spend an average of $7,200 per year caring for aging relatives, highlighting the significant financial challenges seniors and their families face. Despite numerous federal, state, and local support sources, many seniors and their caregivers don't take advantage of available benefits simply because they don't know they exist. This article explores six Medicare-related benefits that are frequently overlooked but can provide substantial financial relief and additional services for older adults.

Medicare Savings Programs

Medicare Savings Programs (MSPs) represent one of the most valuable yet underutilized benefits for eligible seniors. These federal programs can help low-income individuals pay for Medicare Part A and Medicare Part B premiums. In some cases, they may also cover out-of-pocket expenses including deductibles, copayments, or coinsurance.

The value of these programs cannot be overstated, as Medicare premiums can consume a significant portion of a senior's fixed income. Part A hospital insurance premiums are typically $0 for most beneficiaries, but Part B medical insurance premiums averaged $164.90 per month in 2023, which amounts to nearly $2,000 annually. For low-income seniors, these savings can make a substantial difference in their financial well-being.

Eligibility for Medicare Savings Programs is determined by each state's Medicaid office, with each state establishing its own income limits. While specific requirements vary by location, most programs generally consider both income and resources when determining eligibility. Seniors interested in these benefits should contact their state's Medicaid office to learn about state-specific requirements and application procedures.

Medicare Home Health Benefit

The Medicare Home Health Benefit is designed specifically for Medicare beneficiaries who are homebound and require skilled care. This benefit can be particularly valuable for seniors who wish to receive medical services in the comfort of their own homes rather than in institutional settings.

The benefit covers home health services provided by skilled nurses, physical therapists, occupational therapists, speech-language pathologists, and home health aides under the supervision of skilled nurses. These services can include wound care, physical therapy, occupational therapy, speech therapy, and assistance with activities of daily living.

To qualify for this benefit, beneficiaries must be under the care of a physician who has certified that they are homebound and need intermittent skilled nursing care or therapy services. The homebound determination means that the individual has considerable difficulty leaving their home without assistance and leaving home is infrequent, for relatively short durations, and requires a taxing effort.

This benefit can significantly reduce the burden on family caregivers while ensuring seniors receive necessary medical care at home. By sharing care responsibilities with healthcare professionals, family members can avoid some of the physical and emotional strain of providing full-time care.

Free Preventative Visits

Many health insurance plans, including Medicare Advantage plans and Original Medicare, provide free preventative care benefits that are often overlooked by beneficiaries. These services can result in significant savings while promoting better health outcomes through early detection and prevention.

The federal government's Healthcare.gov website details which preventative care services must be free for all adults, and specifically for women and children under the Affordable Care Act. Original Medicare covers a wide range of preventative services at no cost to beneficiaries, including:

• Annual wellness visits
• Many cancer screenings (mammograms, colonoscopies, etc.)
• Bone mass measurement
• Cardiovascular screenings
• Diabetes screenings
• Flu shots and other immunizations
• Depression screenings
• Hepatitis C screenings
• HIV screenings
• Obesity screening and counseling

These free preventative visits can have a significant financial impact on seniors by reducing out-of-pocket healthcare costs. By taking advantage of these services, seniors not only save money but also maintain better health through regular check-ups and screenings that can detect potential health issues early.

Exercise Classes and Fitness Benefits

Some health insurance providers offer free or discounted fitness classes and gym memberships for their members, a benefit that is frequently overlooked despite its potential value for seniors' health and finances. Regular physical activity is essential for maintaining mobility, strength, balance, and overall health as people age.

The availability of fitness benefits varies by insurance plan, but some Medicare Advantage plans have partnerships with local gyms, YMCAs, and fitness centers to provide members with free or discounted memberships. Additionally, some plans offer virtual fitness programs that can be accessed from home, which can be particularly beneficial for seniors with mobility issues or those living in remote areas.

By utilizing these fitness perks, seniors can reduce healthcare costs while improving their physical well-being. Regular exercise can help prevent chronic conditions, reduce the risk of falls, and improve quality of life, potentially reducing future healthcare expenses.

Timely Medicare Enrollment

Enrolling in Medicare on time is crucial for avoiding late enrollment penalties and ensuring continuous coverage. Many seniors are unaware of the specific enrollment periods and the potential financial consequences of missing these deadlines.

The initial enrollment period for Medicare is seven months, starting three months before the month of a person's 65th birthday and ending three months after that month. For example, if a person turns 65 in July, their initial enrollment period would run from April through October.

Missing this initial enrollment window means having to wait until Medicare's general enrollment period, which runs from January 1 through March 31 each year. However, enrolling during this period may result in a late enrollment penalty that increases both Part B and Part D premiums permanently. The penalty is calculated based on how long someone went without coverage and can add 10% to the premium for each full 12-month period they could have enrolled but didn't.

Timely enrollment helps seniors avoid both gaps in coverage and increased costs due to late penalties. Given that the average 65-year-old is expected to spend $157,500 on healthcare costs in retirement according to Fidelity estimates, avoiding unnecessary premium increases can result in significant savings over time.

Unclaimed Benefits and Rebates

Many retirees overlook government programs and rebates they already qualify for, potentially leaving thousands of dollars in unclaimed assistance on the table. These overlooked benefits include energy efficiency rebates, property tax credits, and healthcare subsidies.

Seniors can check their state's website or contact their local Area Agency on Aging to explore these hidden benefits. Some utilities offer bill assistance or weatherization grants specifically for seniors, which can help reduce energy costs – particularly important for older adults who may spend more time at home. The Low Income Home Energy Assistance Program (LIHEAP) is one such program that can help eligible households with heating and cooling costs.

Additionally, seniors may qualify for property tax relief programs, homestead exemptions, or reverse mortgage counseling services that can provide financial assistance. Making a few phone calls or spending time researching these programs could uncover hundreds of dollars in monthly or annual relief, providing significant financial assistance during retirement.

Conclusion

Understanding and utilizing the full range of Medicare benefits can significantly improve seniors' financial well-being and quality of life. The six benefits discussed – Medicare Savings Programs, Medicare Home Health Benefit, Free Preventative Visits, Exercise Classes, Timely Medicare Enrollment, and Unclaimed Benefits and Rebates – each offer valuable resources that are frequently overlooked.

By taking the time to explore these options and apply where eligible, seniors can potentially save thousands of dollars annually while accessing essential services that support healthy aging. Family caregivers can also play a crucial role in helping seniors identify and apply for these benefits, potentially alleviating some of the financial burden associated with caring for aging relatives.

Given the significant healthcare costs seniors face in retirement – with estimates averaging $157,500 for healthcare expenses alone – maximizing available benefits is not just advantageous but essential for financial security in later years.

Sources

1. The 6 Most Overlooked Government Benefits for Seniors
2. 10 Low-Cost Ways Boomers Can Boost Retirement Income Without New Skills
3. 5 2025 Medicare Changes
4. Seniors Resources
5. Unexpected Free Health Insurance Perks
6. Worried About Healthcare Costs in Retirement? These Savvy Moves Can Help