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Most Medicare enrollees misjudge coverage and penalty rules, survey finds
Survey data from eHealth shows 88.0% of adults ages 55 to 64 are unaware of the permanent Part B penalty for delayed enrollment, and 80.0% also miss the potential for permanent Part D penalties.
Insurance Business reports a survey from eHealth finds a major gap between how confident many Americans say they are about Medicare and how much they actually know about key program rules.
According to the August 2026 eHealth Medicare Knowledge Gaps report, nearly 9 in 10 current Medicare beneficiaries say they are confident in their coverage knowledge, but only 13.0% can correctly define all four main Medicare coverage types.
The survey, conducted from July 15 to July 25 among more than 1,000 Americans from a census-balanced sample, also highlights gaps that can affect lifetime costs as the Medicare Annual Enrollment Period opens October 15. Eighty-eight percent of pre-Medicare adults ages 55 to 64 do not know the 10% Part B penalty applies for every 12-month period they were eligible but did not enroll, and Medicare.gov says the penalty is permanent for as long as the beneficiary holds Part B.
The report also finds that 80.0% of pre-Medicare adults do not know delaying Medicare Part D enrollment beyond the initial window can trigger a separate permanent penalty, and 71.0% do not know they may be declined or charged more for a Medicare Supplement (Medigap) plan if they apply outside their initial enrollment period. Insurance Business also cites eHealth CEO Derrick Duke saying the enrollment decision is not just about picking a health plan, but understanding how coverage options affect both access to care and financial security.