5 Medicare Mishaps to Avoid

Mistakes happen. But if you can avoid a few Medicare mishaps, you’ll be in much better shape! We’ve taken the time to come up with a list of the five most common things we see happen that can get you into a little trouble. Check out our list below and set yourself up for success!

Not Considering All Your Options

After you’ve enrolled in Original Medicare (Parts A and B), you’ve got two options. You can enroll in either a Medicare Supplement plan or a Medicare Advantage plan. While you may have strong opinions one way or another, it’s important to take the time to weigh the pros and cons of each option. 

To do this, you’ll have to learn how each type of plan works. You’ll also need to consider your prescriptions, doctors, and any extra coverage you may want. Nothing in Medicare is a one-size-fits-all, so you should consider your unique situation and which option best suits you. Basing your decisions on friends or family members isn’t always the best idea.

Incurring Penalties

Possibly the thing we hate to see the most is Medicare penalties! You can incur late-enrollment penalties for Part A, Part B, and Part D. These are completely avoidable, and the worst part is some of them can stick with you for life. 

To avoid penalties, be sure you are enrolled in Parts A, B, and D either as soon as you turn 65 or as soon as you lose other creditable coverage, whichever is later. If you are delaying Medicare enrollment past the age of 65, be sure to check if your current health insurance has been deemed creditable by Medicare.

The Part D penalty is the one we see most often. Many people assume that if they are not taking any prescriptions, they don’t need to enroll in a Part D prescription drug plan. Unfortunately, that thinking will cause them to have penalties later. 

There are very affordable Part D plans people can use to avoid this situation. If you choose to enroll in a Medicare Advantage (Part C) plan that includes prescription drug coverage, you will not need a stand-alone Part D plan.

Ignoring Enrollment Periods

It is crucially important to pay attention to different Medicare enrollment periods. Missing one could cause you to go without coverage or have coverage that isn’t right for you.

The very first enrollment period you need to know is your specific Initial Enrollment Period (IEP). It begins three full months before your birthday month and ends three months after. So, if your birthday is on July 2, your IEP runs from April 1 through October 31. During this time, you can enroll in Parts A and B, as well as any other coverage you would like.

If you miss your IEP, you’ll likely need to wait for the General Enrollment Period (GEP) to enroll in Medicare. The GEP happens from January 1 through March 31. Anyone who is eligible for Medicare but did not enroll during their IEP can enroll during this time. In most cases, if you enroll during the GEP, you’ll probably be paying some late enrollment penalties.

Special Enrollment Periods are reserved for those who have certain life events. Losing your current coverage, moving, or becoming eligible for Medicaid are just a few examples of things that may allow you to have an SEP. 

Lastly, every person on Medicare should add the Annual Election Period to their calendars. AEP occurs every year from October 15 through December 7. During this time, you can make changes to your current Medicare plans. We’ll discuss why this is important in the next section.

Not Reviewing Your Coverage Annually

No matter what your current Medicare plans are, you should always take time to review them during Medicare’s Annual Election Period. The reason this is so important is that Part C and Part D plans run on annual contracts. They can (and usually do) change from one year to the next. While your plans will automatically renew, you may have missed out on big cost-saving changes if you ignore AEP.

You should review your other plans as well, though you can do those at any time of the year. Insurance companies are always trying to compete with one another, so it’s always worth taking a look at other options.

Not Shopping for Coverage

On that note, we always recommend shopping for your coverage. You can make this simple by enlisting the help of an independent insurance agent, like the ones at Local Medicare Specialists.

As we mentioned, insurance carriers are always trying to win your business. And in many cases, you can get the exact same benefits from many companies. Why pay more for the same coverage? Shop around at multiple companies to ensure you get the coverage you need at a price that fits your budget.