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it can be easy to make a mistake with Medicare

Costly Medicare Mistakes to Avoid

Medicare covers most of the costs of your health care after you turn 65. However, Medicare rules can be confusing, making it easy to make costly mistakes. For instance, failing to make the right Medicare decision could end up costing you high premiums and huge out-of-pocket costs.

Fortunately, you can avoid costly Medicare mistakes. With a little understanding of your Medicare options, you can make an informed decision when it comes to choosing the right plan. Here are the common Medicare mistakes you need to avoid.

Not Enrolling at the Right Time

When it comes to signing up for a Medicare insurance plan, timing is vital. As you are approaching 65, you will want to sign up during the Initial Enrollment Period (IEP), which is a 7-month window that starts from the 3 months before the month you turn 65 until 3 months after your 65th birthday. If you fail to enroll in Medicare during this period, you’ll get another opportunity to sign up during the General Enrollment Period.

However, by missing the Initial Enrollment Period, there is a chance you will face late enrollment penalties, even if you enroll during the General Enrollment Period. The only true way you would be able to delay your enrollment and then enroll without facing penalties is if you qualified for a Special Enrollment Period.

Renewing Your Plan Automatically without Reviewing it First

Your Medicare Advantage plan or Medicare Part D plan renews on the 1st of January every year unless you decide to change it. While automatic renewal may look great, it is not always the best decision. These plans can change what prescription drugs or health benefits they cover from year to year. Moreover, they can also change what you pay in premiums, deductibles, coinsurance, or copays. Private insurance firms review their plans annually to ensure they are still viable, so it would be a mistake to just let the plan automatically renew without reviewing it.

If any changes are made, you should receive an Evidence of Coverage or Annual Notice of Change from your plan in September. This will give you the opportunity to review what changes will become effective next year. If you decide you want to switch plans, you can do so during the Annual Enrollment Period, which starts on October 15 and ends on December 7 each year.

Delaying Purchasing a Medicare Supplement Policy

Medicare Supplements (Medigap) are supplemental policies that work with Original Medicare. Medicare Supplement plans cover some of the medical costs left behind by Original Medicare. The right period to buy these policies is during your Medicare Supplement Open Enrollment Period. The Medicare Supplement Open Enrollment Period has a 6-month window that starts when you turn 65, and you have signed up for Part B.

It is vital to sign up during this period because insurance companies that sell Medicare Supplement policies cannot deny you coverage based on your pre-existing health conditions. If you try to purchase a Medigap plan outside of the open enrollment period, the Medigap policy provider may deny you coverage due to your existing health condition or increase the rate.

Having the Same Medicare Plan as Your Spouse

Every individual is different in their current health conditions and medical history, so a Medicare plan that works well for your spouse may not necessarily be the ideal plan for your health needs. So, compare the Medicare plans with your exact health care needs in mind. You and your spouse both need to enroll in Medicare individually. You won’t automatically get signed up for Medicare even though your spouse already has Medicare.

If you’re ready to enroll in Medicare and would like assistance in avoiding more costly mistakes, please contact Cornerstone Senior Advisors.