When it comes to Medicare, making the wrong move could cost you. It can be the difference between lifelong penalties and having affordable coverage that checks all the boxes. But most Medicare mistakes are often preventable with early planning and a little research.
1. Missing Enrollment Deadlines
Your Initial Enrollment Period (IEP) is a golden window that opens 3 months before your 65th birthday, spans your birthday month, and closes three months after. Missing this period could delay your enrollment to the General Election Period (GEP), from January 1st to March 31st annually.
Our Advice: Begin exploring Medicare at least 3 months before turning 65. If you're extending current coverage beyond 65 and deferring Medicare, ensure your plan is recognized as creditable to avoid enrollment issues during your IEP.
2. Facing Late Enrollment Penalties
These penalties are tied to missed deadlines for Premium Parts A, B, and D, escalating for each month without creditable coverage.
Our Advice: Enroll promptly when eligible. If delaying due to creditable coverage, maintain proof of insurance. Should you lose coverage, enroll in Medicare without delay to dodge penalties.
3. Overestimating Your Coverage's Creditability
Not all plans are created equal. Employer coverage might be creditable, but COBRA is not deemed a substitute for Medicare. If you keep COBRA while delaying Medicare enrollment, you’ll run the risk of penalties and coverage gaps for late enrollment.
Our Advice: Verify your plan’s creditability with your benefits administrator and ensure you receive annual confirmation of your coverage's status.
4. Skipping Additional Coverage
Medicare was not designed to cover all healthcare expenses. For example, neither Part A nor Part B cover routine dental care, long-term care, or prescription drugs. Without additional coverage, you could face devastating out-of-pocket costs.
Our Advice: Consult with a licensed insurance agent who can guide you through additional coverage options and key deadlines.
5. Neglecting Annual Review of Your Plan
Plan benefits and availability change yearly. Failing to reassess your plan could lock you into unsuitable coverage for the next year, especially considering fluctuating doctor networks and drug formularies.
Our Advice: Review your plan’s Annual Notice of Change each September and explore other plans during the Annual Enrollment Period (AEP) from October 15th to December 7th. Now that you know how to avoid these common Medicare mistakes, you can navigate your coverage with confidence. If you still need guidance, AMAC’s Medicare Advisory Service is just a phone call away! For help with Medicare, call 855-611-4856 to speak with AMAC's Medicare Advisory Service.
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