Navigating Medicare can be overwhelming, and making mistakes during enrollment or plan selection can lead to higher costs, gaps in coverage, and unnecessary penalties. Here are five common Medicare mistakes and how to avoid them.
1. Missing the Initial Enrollment Period
One of the biggest mistakes people make is not signing up for Medicare at the right time. Your Initial Enrollment Period (IEP) begins three months before your 65th birthday and lasts three months after. If you miss this window, you may have to wait until the General Enrollment Period (Jan. 1 – March 31), which could result in late enrollment penalties.
How to Avoid It: Mark your calendar and enroll during your IEP to avoid penalties. If you’re still working and have employer coverage, check whether you qualify for a Special Enrollment Period (SEP).
2. Choosing the Wrong Medicare Plan
Many people fail to compare Original Medicare with Medicare Advantage plans before enrolling. Original Medicare offers nationwide provider access, while Medicare Advantage plans may have network restrictions but include extra benefits like dental and vision coverage.
How to Avoid It: Assess your healthcare needs, provider preferences, and budget before choosing a plan. If you travel frequently or need specific doctors, Original Medicare with a Medigap policy may be a better fit.
3. Not Signing Up for Part D Prescription Drug Coverage
Some individuals skip enrolling in Medicare Part D because they don’t take medications. However, delaying enrollment can result in permanent late penalties and higher costs if you need prescriptions later.
How to Avoid It: Even if you don’t take medications now, enroll in a low-cost Part D plan to avoid penalties and ensure coverage for future needs.
4. Ignoring Out-of-Pocket Costs
Medicare doesn’t cover everything, and many people underestimate deductibles, copayments, and coinsurance. Without supplemental coverage, out-of-pocket expenses can add up quickly.
How to Avoid It: Consider purchasing a Medigap policy to help cover costs. If you choose Medicare Advantage, review the maximum out-of-pocket limits to avoid unexpected expenses.
5. Assuming Medicare Covers Everything
Medicare does not cover services like long-term care, dental, vision, and hearing aids. Many enrollees assume these services are included, leading to unexpected expenses.
How to Avoid It: Research additional coverage options, such as Medicare Advantage plans that include extra benefits or standalone dental and vision insurance.
Avoiding these common Medicare mistakes can save you money, stress, and coverage gaps. Take time to compare plans, enroll on time, and understand your benefits to make the most of your Medicare coverage.