• Learn the disadvantages of Medicare.Doctor image by Monika 3 Steps Ahead from Fotolia.com
  
  Medicare was launched in 1965 as a federal health insurance program. Medicare provides health insurance coverage for people 65 and older, people under 65 who have been on Social Security or Railroad Retirement Board disability for two or more years, and all people with permanent kidney failure. Medicare may be unsustainable in the long run due to the cost of the program and the government's budget deficits. There are three main disadvantages to Medicare: insufficient coverage, restricted treatments and limited coverage area.
  
  

Insufficient Coverage

• Medicare recipients can be critical of its health coverage. There is almost always a need to supplement Medicare with additional health care coverage from private companies, referred to as "Medigap." These supplemental plans can end up costing more than private health insurance, especially with the high deductibles you might have to pay for uncovered medical procedures.
  
  

Restrictions

• According to the California Registry, many patients are electing to obtain Medicare through Health Maintenance Organizations because the costs are less up front. Most HMOs operate as "risk" HMOs, so they are paid a fixed amount by Medicare and you are limited to HMO-approved physicians only. This vastly restricts your access to health care options. Moreover, you must live within the service-providing area for which the HMO has a Medicare contract, which limits where you can receive treatment.
  
  

Limited Access

• As most HMOs receive a flat rate regardless of the health care treatment you receive and they have to pay for, most HMOs will limit your access to specialists or certain medical services. HMOs encourage doctors on their approved lists to restrict the amount of referrals they give out, which might negatively affect your health. An HMO's focus on costs could influence a doctor's treatment decisions, potentially leading to less effective care.