Medicare Pitfalls and How to Avoid Them
Medicare mistakes can be costly in terms of money and coverage.
Medicare insures millions of older Americans. It’s a complex program that needs careful consideration during the initial enrollment and annual renewal periods. Delaying or overlooking these responsibilities can be expensive.
Top 13 Medicare Pitfalls
- Not Signing Up on Time: You have a seven-month window around your 65th birthday to enroll in Medicare. Missing this can lead to penalties.
- The Special Enrollment Period: If you retire after 65 or lose other health coverage, you have a chance to enroll without penalty. Missing this can be costly.
- Skipping Medicare Part D: If you don’t sign up for a Medicare Part D prescription drug plan when you first enroll and you don’t have equivalent coverage elsewhere, you could face a penalty.
- Neglecting Supplemental Insurance: Medicare has coverage gaps. If you don’t sign up for supplemental insurance “Medigap” during your initial seven-month period, you might face higher costs later. Your Initial Enrollment Period is 3 months before the month of your birth, the month of your birth, and 3 months after.
- Not Understanding Coordination with Other Insurance: If you have other health insurance, you need to know how it works with Medicare. Misunderstandings can be expensive.
- Confusing Medicare with Medicare Advantage: Understand the differences between traditional Medicare and Medicare Advantage plans to choose the right option for your needs.
- Not Reading the Fine Print of Medicare Advantage Plans: These plans might offer extra benefits, but they come with restrictions and additional costs.
- Not Checking the Carrier’s Formulary: Drug coverage can change annually. Ensure your medications are covered by your plan each year.
- Choosing a Prescription Plan Without Checking Your Meds: Make sure the drug plan you choose covers the medications you need. If it doesn’t, you might need to request an exception or appeal leaving yourself vulnerable to higher costs.
- Not Checking if Your Doctors and Hospitals are Covered: Verify they are covered by your plan to avoid out-of-network charges.
- Overlooking Automatic Renewal Details: Review your plan’s changes annually, as automatic renewals might mean changes in coverage or increased costs.
- Ignoring Out-of-Pocket Costs: When choosing a plan, calculate all potential out-of-pocket costs to avoid surprises.
- Attempting to Do It Alone: Medicare can be complex. Consider seeking the advice of a knowledgeable, licensed agent at The Insurance Hub to help navigate the options. And the best part? It doesn’t cost you a thing!
Being proactive and informed about your Medicare choices can save you from unnecessary expenses and ensure you have the coverage you need.
