New Survey: Americans are Confident They Understand Medicare but the Data Suggests Otherwise

Rhea-AI Summary

eHealth (Nasdaq: EHTH) released new survey findings on August 20, 2026 showing a gap between Americans’ confidence in their Medicare knowledge and their actual understanding. The nationwide survey of more than 1,000 adults found that 89% of current Medicare beneficiaries feel confident about their coverage options, yet many lack key information on costs and penalties.

According to eHealth, 88% of beneficiaries are unaware that Original Medicare has no annual cap on out-of-pocket costs and 42% do not know or underestimate the standard 20% cost-sharing for covered medical charges when enrolled only in Original Medicare. Only 13% could correctly define all four major Medicare coverage types: Original Medicare, Medicare Advantage, Medicare Supplement, and Medicare Part D.

Among adults ages 55–64 not yet enrolled in Medicare, 24% are confident about their coverage options, while 88% do not know about potential 10% Part B premium penalties for each 12-month delay in enrollment and 80% are unaware of potential late enrollment penalties for Medicare Part D.

Market Context

Recent history included a -0.63% reaction to a July 14 survey, while EHTH's current short signal was...

Analysis

Recent history included a -0.63% reaction to a July 14 survey, while EHTH's current short signal was low. The platform context adds a historical comparator; the active S-3 shelf creates potential dilution risk if used.

Key Figures

Survey Sample: more than 1,000 Americans Confidence in Coverage Knowledge: 89% Unaware of No Annual Cap: 88% +5 more

8 metrics

Survey Sample more than 1,000 Americans nationwide survey

Confidence in Coverage Knowledge 89% Medicare beneficiaries

Unaware of No Annual Cap 88% Original Medicare beneficiaries

Unaware of Cost Sharing 42% beneficiaries unaware of or underestimating 20% out-of-pocket costs

Typical Cost Sharing 20% covered medical charges under Original Medicare

Correctly Identified Coverage Definitions 13% Medicare beneficiaries identifying all four primary coverage options

Part B Late Enrollment Penalty 10% per 12-month period potential penalty for delayed Medicare Part B enrollment

Unaware of Supplement Restrictions 71% pre-Medicare adults unaware of potential Medicare Supplement restrictions

Historical Context

5 past events · Latest: Aug 04 (Negative)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 04	Q2 earnings	Negative	-11.3%	Q2 results were released through investor-relations materials; the stock declined after the earnings disclosure.
Jul 22	Earnings scheduling	Neutral	-4.3%	Earnings-call scheduling announcement preceded a negative 24-hour price reaction.
Jul 14	Healthcare survey	Negative	-0.6%	Survey highlighted inflation-driven care delays and retirement healthcare-cost concerns among surveyed Americans.
Jun 10	AI survey	Neutral	-0.6%	Survey described AI use for medical advice and difficulty defining insurance terms.
Jun 04	Partnership announcement	Positive	+8.2%	eHealth and Nexben announced an ICHRA solution partnership for brokers, employers, and employees.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Historical reactions were mixed: negative moves followed both earnings-related items, while the partnership produced a positive reaction.

Key Terms

original medicare, medicare advantage, medicare supplement, medicare part d, +2 more

6 terms

original medicare regulatory

"financial risks and complexity of Original Medicare"

Original Medicare is the U.S. federal health insurance program that provides basic hospital coverage (Part A) and outpatient/doctor coverage (Part B) to eligible people, usually older adults and certain disabled individuals. Investors watch it because it sets payment rules, coverage limits, and patient demand that directly affect hospitals, drugmakers, medical suppliers and insurers—think of it as the baseline rules and budget for a large public customer in healthcare.

medicare advantage regulatory

"Original Medicare, Medicare Advantage, Medicare Supplement, and Medicare Part D"

Medicare Advantage is a type of health insurance plan offered by private companies that covers services traditionally provided by government-run Medicare. Think of it as a bundled package that combines hospital, doctor, and other medical care into one plan, often with added benefits. For investors, it matters because the popularity and profitability of these plans can influence healthcare companies and the broader health insurance industry.

medicare supplement regulatory

"Original Medicare, Medicare Advantage, Medicare Supplement, and Medicare Part D"

Medicare Supplement, also called Medigap, is a private insurance policy that fills the gaps left by original government Medicare — such as deductibles, coinsurance, and copayments — so a patient pays less out of pocket. For investors, these plans matter because they are sold and managed by private insurers; enrollment levels, claim costs, and pricing of these add-on policies influence insurers’ revenue, profit margins and exposure to future medical costs, similar to how extended warranties change a product seller’s financial risk.

medicare part d regulatory

"Original Medicare, Medicare Advantage, Medicare Supplement, and Medicare Part D"

Medicare Part D is the U.S. federal program that helps people on Medicare pay for outpatient prescription drugs through private plans that negotiate prices and list covered medicines. For investors it matters because the program shapes how drugs are priced, which medicines get chosen by plans, and how much patients and insurers pay—similar to a large group discount card that influences sales, margins, and revenue predictability across drugmakers, insurers, pharmacies and pharmacy benefit managers.

coinsurance financial

"20% coinsurance cost-sharing does not apply for covered preventive care"

Coinsurance is the portion of a medical or insurance bill that the policyholder must pay as a percentage after any deductible is met — for example, paying 20% of a doctor's bill while the insurer pays the remaining 80%. Like splitting a restaurant check by percentage rather than a fixed amount, it changes how much people actually use services. Investors watch coinsurance because higher patient cost-sharing can reduce demand for treatments, affect health-care providers’ and drugmakers’ revenue, and change insurers’ claims patterns and profitability.

late enrollment penalty regulatory

"may incur a late enrollment penalty if they delay enrollment"

A late enrollment penalty is an extra charge added to a person’s ongoing premium when they join a regulated program, insurance plan, or benefit after the official signup window has closed. It matters to investors because the penalty affects future revenue and expense streams for the plan or insurer—like a long-term surcharge—similar to paying a higher rate for a gym membership because you missed a discounted signup period.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Many Americans underestimate the financial risks and complexity of Original Medicare

42% of beneficiaries are unaware of Original Medicare's standard 20% cost-sharing, and 88% of adults approaching age 65 are unaware of potential late enrollment penalties

INDIANAPOLIS, Aug. 20, 2026 /PRNewswire/ -- With a record number of Americans soon making Medicare coverage decisions for 2027, new original research from eHealth (Nasdaq: EHTH) found most beneficiaries are confident in their knowledge of how the federal program works. Yet when asked for specifics about how Medicare works, most current beneficiaries — and even more Americans soon eligible for the program — struggle, with many unaware of the potential penalties for delayed enrollment or of cost-sharing requirements under Original Medicare.

Based on a survey of more than 1,000 Americans, the new report from eHealth, a leading private online health insurance marketplace, found many people approaching Medicare age — and many already enrolled in the program— do not have a well-informed understanding of how Medicare works.

Key findings from the report:

• 89% of Medicare beneficiaries are confident they understand their Medicare coverage options.

Yet most beneficiaries are unaware of the financial risks when enrolled solely in Original Medicare and struggle to fully understand their different coverage options.

• 88% of Medicare beneficiaries are unaware there is no annual cap on out-of-pocket costs under Original Medicare.
• 42% of Medicare beneficiaries do not know or underestimate the 20% out-of-pocket costs they will typically have to pay for all covered medical charges if enrolled solely in Original Medicare¹.
• 82% of Americans approaching eligibility age for Medicare are unaware of the 20% coinsurance for covered medical services.
• Only 13% of Medicare beneficiaries could accurately identify the definitions of the primary Medicare coverage options, specifically Original Medicare, Medicare Advantage, Medicare Supplement, and Medicare Part D.

"The new survey shows that consumer confidence doesn't always translate into actual understanding," said Derrick Duke, CEO of eHealth. "Enrolling in Medicare isn't just about selecting a health plan — it's about understanding how different coverage options affect your access to healthcare and financial security. Our survey shows many Americans are making those decisions without fully understanding how their various Medicare coverage options work, or the potential tradeoffs of each one."

Additional key findings among current Medicare beneficiaries: 

• 89% of Medicare beneficiaries say they are either "very confident" (43%) or "confident" (46%) in their understanding of their Medicare coverage options.
• 13% of Medicare beneficiaries can correctly identify the definitions for all four types of Medicare coverage:
  • 42% of current Medicare beneficiaries can correctly identify the definition of Original Medicare.
  • 44% of current Medicare beneficiaries can correctly identify the definition of a Medicare Part D plan.
  • 45% of current Medicare beneficiaries can correctly identify the definitions of Medicare Advantage and Medicare Supplement (Medigap) plans.

Additional key findings among Americans not yet enrolled in Medicare:

• 24% of adults ages 55 to 64 who are not yet enrolled in Medicare are confident about their coverage options.
• 88% of adults ages 55 to 64 who are not yet enrolled in Medicare are unaware that a 10% penalty may be added to their Medicare Part B premium for every 12-month period they were eligible to enroll but did not.²
• 80% of pre-Medicare adults ages 55 to 64 do not know they may incur a late enrollment penalty if they delay enrollment in Medicare Part D coverage beyond their initial enrollment period².
• 71% of pre-Medicare adults ages 55 to 64 are unaware they may be declined or charged more for Medicare Supplement if they apply beyond their initial enrollment period.²

Read the full report.

eHealth's report is based on nationwide surveys of more than 1,000 American adults drawn from the general population. The surveys were conducted by a third-party survey vendor between July 15 and 25, 2026. The overall margin of error is +/- 3%.

¹ 20% coinsurance cost-sharing does not apply for covered preventive care.
² Penalties typically do not apply when an individual has another form of qualifying coverage, such as employer-based coverage.

About eHealth
For nearly 30 years, eHealth, Inc. (Nasdaq: EHTH) has helped millions of Americans find the healthcare coverage that fits their needs at a price they can afford, using data, artificial intelligence and a consumer-first approach to help people quickly and effectively compare insurance options. As a leading independent licensed insurance agency and advisor, eHealth offers access to plans from more than 180 health insurers, including national and regional companies, supporting consumers during their working years and retirement. eHealth's licensed insurance agents help match consumers with the insurance plans, services, and support they need to live healthier, more financially secure lives. For more information, visit eHealth or follow us on LinkedIn, Facebook, Instagram, and X.

eHealth media inquiries: pr@ehealth.com

eHealthInsurance Services, Inc. is a licensed health insurance agency that does business as eHealth. In NY, IL and OK, eHealth does business as eHealthInsurance Agency. eHealth is not affiliated with the government.

 

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SOURCE eHealth, Inc.

FAQ

What did eHealth’s August 20, 2026 Medicare survey reveal about beneficiaries’ understanding of Medicare (EHTH)?

eHealth’s survey found most Medicare beneficiaries feel confident but often misunderstand key Medicare rules and costs. According to eHealth, 89% report confidence in their coverage knowledge, yet only 13% correctly identified definitions of Original Medicare, Medicare Advantage, Medicare Supplement, and Medicare Part D.

How many Medicare beneficiaries know about Original Medicare’s 20% cost-sharing according to eHealth (EHTH)?

According to eHealth, 42% of Medicare beneficiaries do not know or underestimate the typical 20% out-of-pocket cost under Original Medicare. The survey also reports 82% of adults approaching Medicare eligibility are unaware of this 20% coinsurance for covered medical services, excluding covered preventive care.

Does Original Medicare have an annual out-of-pocket maximum, according to eHealth’s 2026 survey on EHTH?

According to eHealth, 88% of Medicare beneficiaries are unaware that Original Medicare has no annual cap on out-of-pocket costs. The survey highlights that beneficiaries enrolled solely in Original Medicare may face unlimited annual expenses, apart from typical 20% coinsurance exemptions for covered preventive care services.

What late enrollment penalties did eHealth highlight for Medicare Part B and Part D in 2026 (EHTH)?

eHealth reported that 88% of adults aged 55–64 do not know Medicare Part B premiums may rise 10% for each 12-month delayed enrollment. According to eHealth, 80% also do not realize they may incur a late enrollment penalty for Medicare Part D if they delay coverage.

How confident are adults aged 55–64 in their Medicare coverage knowledge, based on eHealth’s EHTH survey?

According to eHealth, only 24% of adults ages 55 to 64 not yet enrolled in Medicare feel confident about their coverage options. The survey also found many in this group are unaware of Part B and Part D late enrollment penalties and possible underwriting for Medicare Supplement plans.

When was eHealth’s Medicare knowledge survey conducted and how large was the sample (EHTH)?

According to eHealth, the Medicare knowledge survey was conducted between July 15 and 25, 2026 by a third-party vendor. The study included more than 1,000 American adults from the general population, with an overall reported margin of error of approximately plus or minus 3%.