Medicare Mistakes

Millions of seniors rely on Medicare in retirement. However, if you’re not proactive and well-informed, you could end up paying more for your health coverage. This could also lead to permanent lifetime penalties, and missing out on key benefits that Medicare has to offer. Below are 10 Medicare mistakes to avoid.

1. Signing Up Late

Medicare eligibility starts at age 65, but you get a seven-month window to sign up. Your initial enrollment period begins three months before the month you turn 65 and ends three months after. If you neglect to enroll during those seven months, you can sign up during the general enrollment period from January 1 through March 31 each year.

However, not signing up on time could cost you permanent lifetime penalties for Parts B and D. While Medicare Part A, which covers hospital care, is free for most enrollees, seniors are charged a premium for Part B, which covers doctor visits and diagnostics. If you wait too long to sign up for Medicare, you’ll be hit with a 10% surcharge for your Part B premiums for each 12-month period you were eligible for coverage but didn’t enroll.

Additionally, delaying enrollment in a Part D drug plan will also result in a penalty. Signing up on time for Parts B and D will help you avoid paying more for Medicare than necessary. It will also ensure you have the coverage you need when you need it.

2. Not Reviewing Your Part D Plan Annually

Once you choose a Part D prescription plan, you may be inclined to keep it to avoid the initial homework. However, if you don’t reassess your Part D coverage annually, you could end up overpaying for your prescriptions.

Part D plan formularies can change every year. The medications you once got great coverage for may no longer be treated the same way. Therefore, you should re-examine your Part D options each year, even if you’re happy with your current plan. Being informed and a smart shopper can save you money.

3. Not Reviewing an Advantage Plan

Traditional Medicare’s coverage is somewhat limited. Many key services, like dental care, vision, prescription drugs, and hearing, are not covered. Paying for these costs on your own can get quite expensive. This is why Medicare Advantage is an option worth examining.

Medicare Advantage Plans are required to offer at least the same level of coverage as Original Medicare, but generally, they do more. Many Advantage plans cover dental, vision, hearing, and prescription drugs. Often, they are just as affordable as Original Medicare, or even less expensive.

It is beneficial to look into an Advantage Plan if your out-of-pocket costs under Original Medicare are high. This is especially true if you travel overseas a lot, as Original Medicare won’t pay for health services abroad, while many Advantage Plans will.

4. Passing Up Your Free Annual Wellness Visit

As a Medicare enrollee, you’re entitled to a free annual wellness checkup. Passing it up is a mistake you might regret. It’s not uncommon for health issues to be discovered during these routine visits. Without these checkups, a brewing medical condition might escalate, compromising your health and costing more to fix.

Managing your Medicare well means avoiding costly mistakes that could hurt you financially and, worse, put your health at risk

5. And Six more helpful tips for You in my Free Report.