We understand that Medicare can be confusing, and at times, overwhelming. That’s why we are here to help you avoid some costly Medicare mistakes so you can get the coverage you need in peace.
1) Waiting Past Your Initial Enrollment Period
The Initial Enrollment Period can save you thousands of dollars down the road.
When you enroll during the Initial Enrollment Period:
- You could get Medicare Part A with a $0 premium
- You could enroll in a Part C or Part D plan
- No late fees
If you wait, not only will you have to pay for Medicare Part A’s premium (even if you qualified for the premium-free version before), but you’ll have to pay an extra 10% on top of that, for twice the number of years per year you wait. For Part B, your late fees gain an extra 10% every year, and that is a permanent late fee. Part D’s late fee is also permanent and it accrues an extra 1% every month.
2) Not Checking with Your Other Insurer Before Enrolling in Medicare
You may abstain from enrollment because of already having insurance through an employer. Doing this doesn’t always result in penalties. If your employer has at least 20 employees, you can delay Part A and Part B enrollment. But, if your employer has fewer than 20 employees, then delaying enrollment can result in late fees.
Medicare Advantage is a great policy, but it doesn’t always allow for other insurance or supplemental coverage. If you get Medicare Advantage while still having insurance through your employer, it is possible to lose your employer coverage and you may not be able to get it back. The same could happen if you try to join Medicare Advantage while having a Medicare Supplement Plan.
3) Ignoring the Annual Notice of Change
Medicare changes every year. This is shown in two documents that you get in the mail – the Evidence of Coverage and Annual Notice of Change. These arrive in the mail in September.
Evidence of Coverage shows what you paid and what was covered, so you can see the impact your policy had that year.
The Annual Notice of Change alerts you of the changes your policy will make at the beginning of the next year. Medicare Part D and Medicare supplements are good examples. With Medicare Part D, medications are added to and removed from formularies, and some medications are added to a higher tier, which makes them more expensive. Medicare supplements have price increases at different rates, so sometimes the plan that starts out being more expensive becomes cheaper than the initial lower-priced alternatives.
Turning 65 Solutions Can Help
If your plan becomes too expensive for you, you have between October 15 to December 7 during the Annual Enrollment Period to change your plan. If you would like to switch to a different plan, Turning 65 Solutions can help you by finding a Medicare plan that fits your health and budget needs. You can reach out to us at (830) 217-6711, and you can also choose to email us at ron@t65s.com.