TOP 5 MEDICARE MISTAKES
- Ben Murray
- Jul 18, 2024
- 3 min read
Navigating Medicare can be challenging, and making mistakes can result in significant financial and healthcare consequences. Here are the top five mistakes people often make regarding Medicare and tips on how to avoid them.
1. Delaying Enrollment in Medicare Part B
One of the most common and costly mistakes is delaying enrollment in Medicare Part B without having credible coverage. Part B covers essential medical services such as doctor visits, outpatient care, and preventive services. If you delay enrollment and don't have employer-sponsored insurance, you could face a lifetime late enrollment penalty, which increases your premium by 10% for each 12-month period you were eligible but didn’t enroll.
Avoid This Mistake By:
Enrolling During the Initial Enrollment Period (IEP): This period starts three months before your 65th birthday month and ends three months after.
Understanding Credible Coverage: Ensure that if you have coverage through an employer, it qualifies as credible coverage to avoid penalties. Once this coverage ends, enroll in Part B during the Special Enrollment Period (SEP) without penalty.
2. Confusing Medicare Advantage and Medigap Plans
Many people misunderstand the difference between Medicare Advantage (Part C) and Medigap (Supplemental) plans. Medicare Advantage plans are an alternative to Original Medicare and often include additional benefits like dental, vision, and prescription drugs. Medigap plans, on the other hand, supplement Original Medicare by covering out-of-pocket costs like co-payments, coinsurance, and deductibles.
Avoid This Mistake By:
Researching Thoroughly: Compare the benefits and costs of Medicare Advantage and Medigap plans. Utilize tools like the Medicare Plan Finder on the official Medicare website.
Consulting with a Professional: Speak to a Medicare advisor to understand which option best suits your healthcare needs.
3. Neglecting Prescription Drug Coverage (Part D)
Even if you don’t take any prescription medications now, not enrolling in a Part D plan when you’re first eligible can result in a late enrollment penalty. This penalty is permanent and is added to your monthly premium if you decide to join a Part D plan later.
Avoid This Mistake By:
Enrolling When First Eligible: Sign up for a Part D plan during your Initial Enrollment Period, even if you don’t currently need prescription drugs.
Checking for Credible Coverage: If you have prescription drug coverage from another source, such as an employer, ensure it is considered credible to avoid penalties.
4. Assuming Medicare Covers Everything
Original Medicare (Part A and Part B) does not cover all health expenses. For example, it doesn’t cover routine dental care, vision exams, hearing aids, or long-term care. Failing to understand this can lead to unexpected out-of-pocket costs.
Avoid This Mistake By:
Reviewing Coverage Details: Understand what Original Medicare covers and what it doesn’t. Consider additional coverage options like Medigap or Medicare Advantage plans that offer broader benefits.
Planning for Additional Costs: Budget for services that Medicare doesn’t cover or look into supplemental insurance options.
5. Not Reviewing Coverage Annually
Medicare plans can change their coverage and costs yearly. Failing to review your plan annually during the Open Enrollment Period can result in missed opportunities for better coverage or lower costs.
Avoid This Mistake By:
Annual Plan Review: During the Open Enrollment Period (October 15 to December 7), review your current plan and compare it with other available options.
Seeking Professional Help: Medicare advisors or counselors can help you navigate changes and find the best plan for your needs.
Conclusion
Avoiding these common Medicare mistakes can save you money and ensure you have the coverage you need. Stay informed, review your options regularly, and seek professional advice when necessary. Making the right Medicare decisions is crucial for your health and financial well-being.
If you’d like me to help you or someone you care about figure out the best Medicare route, please reach out to me TODAY! -> CONTACT BEN <-
