You’ve worked hard your whole life—so why pay more for Medicare than you have to? Each year, thousands of people unknowingly make choices that increase their Medicare costs. The good news? You don’t have to be one of them.
Let’s walk through the most common (and expensive) Medicare mistakes people make—and how you can avoid them in 2026.
Mistake #1: Not Doing Your Homework
Medicare can be confusing, especially with so many plan options and yearly changes. But skipping your research could cost you big. The smartest move? Compare your options.
Start with Medicare.gov or review your Medicare & You 2026 Handbook. Don’t throw out your Annual Notice of Change (ANOC) letter—this one document tells you what’s changing in your current plan for 2026. If premiums, deductibles, or drug coverage are increasing, now’s the time to look elsewhere.
Tip: Help is free. Licensed agents, brokers, or your local SHIP counselor can help you compare plans at no cost to you.
Mistake #2: Missing the Initial Enrollment Period
Turning 65? You have a 7-month window (3 months before, the month of, and 3 months after your 65th birthday) to enroll in Medicare. This is your Initial Enrollment Period—and missing it can lead to late enrollment penalties or delayed coverage.
Even if you’re receiving disability benefits, you’ll need to re-enroll at 65 to access new plan options.
Mistake #3: Skipping Prescription Drug Coverage
You might think, “I don’t take any medications—I don’t need a Part D plan.” But here’s the catch: Medicare charges a 1% penalty for every month you delay getting prescription drug coverage after you're eligible, unless you have other creditable coverage (like VA benefits). That penalty lasts for life.
In 2026, there’s even more reason to have Part D: out-of-pocket drug costs are capped at $2,100. Once you hit that limit, you pay nothing for covered drugs the rest of the year.
Even if you don’t need medications today, pick the lowest-cost plan to avoid penalties later.
Mistake #4: Ignoring Medicare Advantage and Medigap Options
Original Medicare (Part A and B) only covers about 80% of your medical costs. The remaining 20% can add up fast—especially during hospital stays or serious illnesses.
A Medicare Advantage (Part C) plan can bundle your hospital, medical, and drug coverage—and may offer extras like vision, dental, or hearing benefits. Many plans also have out-of-pocket maximums to limit your annual costs.
Prefer to stay with Original Medicare? A Medigap (Medicare Supplement) plan can help pay that 20% gap. Plans like G or N are popular options, and you can apply during your Medigap Open Enrollment Period without worrying about pre-existing conditions.
Mistake #5: Not Reviewing Your Plan Every Year
Just because your plan worked last year doesn’t mean it’s the best option this year. Each fall, during Open Enrollment (October 15 – December 7), you can switch your Medicare Advantage or Part D plan. If you do nothing, you’ll be automatically re-enrolled—but your plan may have changed.
And in 2026, plan changes could be significant. Some plans may disappear, while others may add or remove benefits. That ANOC letter you get in the mail? Don’t toss it—read it!
Final Thought: Ask for Help, Save Money
You don’t have to figure this out on your own. Licensed agents, your state’s SHIP counselor, and Social Security representatives are all ready to help. Take the time to get informed now—so you don’t pay more later.