Medicare can be complex and confusing. Navigating this system is often filled with potentially costly mistakes. Here are five common Medicare mistakes and how you can avoid them.
1. Missing Your Initial Enrollment Period (IEP)
When you turn 65, you have a seven-month window known as the Initial Enrollment Period (IEP). This includes three months before you turn 65, the month of your 65th birthday, and three months after. If you miss this window, you may face late enrollment penalties.
How to avoid:
Mark your calendar and set reminders well in advance to ensure that you sign up for Medicare during your IEP.
2. Not Understanding Medicare’s Different Parts
Medicare comes in four parts: Part A (hospital insurance), Part B (medical insurance), Part C (Medicare Advantage), and Part D (prescription drug coverage). Not understanding these parts can lead to gaps in coverage and unnecessary expenses.
How to avoid:
Take time to educate yourself about the four parts of Medicare. Consult with a health insurance advisor if necessary to ensure you’re adequately covered.
3. Not Factoring In Out-Of-Pocket Costs
Original Medicare (Parts A and B) cover many medical treatments, but they don’t cover everything. Medical tests, prescriptions, and certain treatments can result in significant out-of-pocket costs if you aren’t prepared.
How to avoid:
Look into Medigap and Medicare Advantage plans. These options can offer coverage for expenses not covered by Original Medicare.
4. Not Reviewing Your Plan Annually
Healthcare needs and Medicare plans can change over time. There is an Annual Election Period (AEP), from October 15th to December 7th, when you can make changes to your plans.
How to avoid:
Revisit your plan regularly, at least annually during the AEP, to ascertain if it continues to meet your needs.
5. Ignoring Preventive Benefits
Medicare includes a broad range of preventive services such as screenings, lab tests, and wellness visits. Many people mistakenly overlook these benefits.
How to avoid:
Make optimal use of Medicare’s preventive services. Utilize them to detect health issues early and prevent future complications.
Have you done any of these?
Medicare can be a valuable resource when understood and used correctly. By avoiding these common Medicare mistakes, you can make the most out of your coverage. Take your time to familiarize yourself with the system, understand your own health needs, and regularly check for any changes or updates that might impact you. This way, you’ll be steps ahead in navigating your healthcare journey.
