Signing up for Medicare is an important step, and it's easy to make mistakes along the way. However, with a little knowledge, you can avoid these common pitfalls and ensure your Medicare experience is smooth and stress-free. Here are the top six mistakes to avoid when signing up for Medicare.
Top 6 Mistakes to Avoid When Signing Up for Medicare
1. Missing Your Initial Enrollment Period
The Initial Enrollment Period (IEP) is a seven-month window around your 65th birthday when you can first sign up for Medicare. This period includes the three months before, the month of, and the three months after your 65th birthday. Missing this window can lead to higher premiums and delayed coverage. If you don’t sign up for Medicare Part B (which covers doctor visits and outpatient services) when you’re first eligible, you may face a late enrollment penalty that could last as long as you have Part B.
To avoid this mistake, mark your calendar for when you turn 64 and start researching your Medicare options early. If you are already receiving Social Security benefits, you’ll be automatically enrolled in Medicare Parts A and B, but it’s still wise to double-check that everything is in order. Understand your Initial Enrollment Period and automatic enrollment.
2. Not Understanding Medicare Part A and B Costs
Many people assume that Medicare is completely free, but that’s not the case for everyone. Medicare Part A (hospital insurance) is free if you or your spouse have worked and paid Medicare taxes for at least 10 years. However, Medicare Part B (medical insurance) does have a monthly premium. The standard premium for Part B in 2024 is $174.70, but higher-income individuals may pay more. Additionally, Medicare doesn’t cover everything. You’ll still have out-of-pocket costs like deductibles, copayments, and coinsurance. Learn more about Medicare costs.
Before enrolling, understand what Medicare covers and what it doesn’t. If you’re concerned about out-of-pocket expenses, you might want to look into Medicare Supplement Insurance (Medigap) or Medicare Advantage Plans (Part C), which can help cover additional costs. Explore Medigap and Medicare Advantage options.
3. Assuming Medicare Covers Everything
It’s a common misconception that Medicare covers 100% of your healthcare costs. While Medicare covers many essential services, it doesn’t cover things like dental care, hearing aids, vision care, or long-term care (such as nursing homes or assisted living). These services can add up quickly if you’re not prepared.
To avoid unexpected expenses, consider enrolling in a Medicare Advantage Plan, which often includes extra benefits like dental, vision, and hearing coverage. Alternatively, you could purchase supplemental insurance to fill these gaps. Do your research to ensure you have the coverage you need based on your health and financial situation. Compare Medicare Advantage plans for additional coverage.
4. Not Comparing Medicare Advantage Plans
Medicare Advantage Plans (also known as Part C) are offered by private insurance companies approved by Medicare. These plans bundle together Medicare Part A, Part B, and sometimes Part D (prescription drug coverage) into one plan. Many people choose Medicare Advantage Plans because they offer additional benefits like fitness programs, dental care, and vision services. Find out more about Medicare Advantage plans.
However, not all Medicare Advantage Plans are the same. They can vary widely in terms of costs, coverage, and which doctors or hospitals are in their network. It’s important to compare plans to make sure you’re getting the right one for your needs. Medicare’s Plan Finder tool is a great resource for comparing plans in your area. Use the Medicare Plan Finder to compare options.
5. Overlooking Prescription Drug Coverage (Part D)
Prescription drugs can be a major expense, and many people make the mistake of not signing up for a Medicare Part D plan when they’re first eligible. Even if you don’t take many medications now, it’s important to have coverage in case you need prescriptions in the future. If you don’t sign up for Part D during your IEP and decide to enroll later, you may have to pay a late enrollment penalty, which increases the longer you go without coverage. Avoid the Medicare Part D late enrollment penalty.
To avoid this mistake, review your prescription needs and explore Medicare Part D plans. Many plans cover generic and brand-name drugs, but coverage varies. Make sure your medications are included in the plan’s formulary (list of covered drugs) and that the pharmacy network suits your needs. Compare Medicare Part D plans.
6. Delaying the Purchase of a Medigap Policy
Medigap, or Medicare Supplement Insurance, helps cover some of the out-of-pocket costs that Original Medicare (Part A and B) doesn’t, like copayments, coinsurance, and deductibles. One of the biggest mistakes people make is waiting too long to purchase a Medigap policy. The best time to buy Medigap is during your six-month Medigap Open Enrollment Period, which begins when you’re both 65 and enrolled in Part B. During this time, insurers can’t charge you more or deny coverage based on your health condition.
If you delay buying a Medigap policy and try to purchase it after this period, you may face higher premiums or be denied coverage altogether, especially if you have pre-existing conditions. Don’t wait—get your Medigap policy during the Open Enrollment Period to lock in your best rate and coverage options. Understand Medigap policies and their benefits.
Navigating Medicare can seem complicated, but by avoiding these common mistakes, you can set yourself up for success.
Remember to enroll on time, understand the costs, compare your options, and ensure you have the coverage you need. Medicare is a critical resource, and getting it right the first time can save you time, money, and stress in the long run.
Take a step toward understanding Medicare better by exploring classes available on GetSetUp. Whether you’re new to Medicare or need help navigating specific parts, we offer sessions to help you make the best decisions for your health and future.
Reviewed By: Keith Gilbert