Medicare is a crucial resource for managing healthcare costs as you age, but it can also be a significant financial burden. The good news is there are several strategies you can use to reduce your Medicare expenses. In this article, learn 8 cost-saving tips to help you make the most of your Medicare coverage.
1. Enroll On Time to Avoid Late Penalties
One of the simplest ways to save money with Medicare is to avoid late enrollment penalties. If you miss your Initial Enrollment Period (IEP), which starts three months before you turn 65 and ends three months after your birthday month, you could face lifelong penalties.
For example, Medicare Part B (which covers outpatient care) comes with a 10% penalty for each 12-month period you delay enrollment. The longer you wait, the higher your premiums will be. Similarly, delaying Part D (prescription drug coverage) can also result in a penalty unless you have other creditable drug coverage.
2. Cut Prescription Drug Costs
To lower prescription costs, choose generic drugs whenever possible and use mail-order pharmacies for potentially cheaper medications. Compare Part D plans annually during Open Enrollment to ensure your medications are covered at the best price.
If eligible, the Extra Help program can reduce your Part D premiums, deductibles, and copayments, saving you up to $5,000 annually. Apply online through the Social Security Administration.
3. Explore Medicare Savings Programs
If your income is limited, you might qualify for a Medicare Savings Program (MSP). These programs can help pay for some of your Medicare costs, including premiums, deductibles, and coinsurance. There are different types of MSPs, and eligibility depends on your income and resources. Contact your state Medicaid office to find out if you qualify and to apply.
4. Take Advantage of Preventive Services
Medicare covers a wide range of preventive services at no extra cost to you. These include screenings for cancer, cardiovascular disease, and diabetes, as well as vaccinations, wellness visits, and more. By using these preventive services, you can catch health issues early or even prevent them altogether, which can save you a significant amount of money in the long run. Learn more about preventative services.
5. Use Telehealth Services
Telehealth services are a cost-effective alternative to in-person visits for non-emergency care. Many Medicare plans now cover telehealth, allowing you to consult with healthcare providers remotely—often at a lower cost than in-person visits.
6. Shop Around for Medical Services and Procedures
Costs for medical services can vary significantly depending on where you go. Even within Medicare, some providers charge more than others for the same service. You can save money by shopping around for non-emergency medical procedures, lab tests, or imaging services. Use Medicare’s comparison tools or ask your healthcare provider about lower-cost alternatives. This can be especially useful for procedures like MRIs or outpatient surgeries, where prices may vary widely between facilities. By doing your research, you can lower out-of-pocket costs without sacrificing quality care.
7. Consider a Medigap Plan
If you have Original Medicare, you may want to consider a Medigap (Medicare Supplement Insurance) plan. Medigap plans help cover some of the out-of-pocket costs that Medicare doesn’t, like deductibles, coinsurance, and copayments. Although these plans require a monthly premium, they can save you money in the long run if you frequently visit doctors or require hospital care. Be sure to shop around and compare Medigap policies to find the one that fits your needs and budget.
8. Review and Compare Plans Annually
Your healthcare needs may change over time, so it’s important to review your Medicare coverage each year to ensure it still meets your needs. During the annual Open Enrollment Period, review any changes to your current plan and compare to ensure you’re getting the best coverage for your needs at the lowest cost.
Saving money on Medicare is all about staying informed and making strategic choices. By understanding your options, taking advantage of preventive services, and carefully selecting your plans and providers, you can reduce your healthcare costs while ensuring you get the care you need.
For more tips, consider joining a Medicare class on GetSetUp. These classes are tailored to help you make the most of your Medicare benefits and could be the key to unlocking even more savings.
Reviewed By: Keith Gilbert