TOP 8 MISTAKES TO AVOID WHEN ENROLLING IN MEDICARE

Enrolling is medicare can be a daunting task.  Many people turning 65 are overwhelmed by the number of choices they have in choosing their health care coverage.

Below is a list of the top 8 mistakes that people make when enrolling in medicare.  Avoid these or it could cost you.

MISTAKE #1 -  FAILING TO ENROLL DURING INTIAL ELIGIBILITY

• You have a 7 month window to sign up for medicare.  It begins 3 months before the month you turn 65 and extends 3 months after the month you turn 65.   This is considered your intial enrollment period. Failure to enroll during this period could result in penalties when you do sign up.  There are exclusions such as if you are still working and covered under your employers health plan.

MISTAKE #2 - FAILING TO ENROLL IN A PRESCRIPTION DRUG PLAN

• When you enroll in medicare part A and part B you must also enroll in some type of prescription drug plan within 63 days of the end of your initial enrollment period or you will be penalized when you do enroll.  There is a 1% penalty per month that you do not have credible prescription drug coverage.  So for instance, if you do not sign up for a prescription drug plan until 10 months after your initial enrollment period you will have to pay 10% higher premium.  Warning this penalty does not go away.

MISTAKE #3 - SIGNING UP FOR THE WRONG MEDICARE ADVANTAGE PLAN

• Medicare advantage plans are network plans that are administered by an insurance company.  In many cases your benefits are only able to be used within the network of doctors and hospitals.  Before signing up for a medicare advantage plan make sure that your doctor and hospital are in the network.  If the plan has prescription drug coverage make sure that your drugs are covered and you have verified the cost to fill.

MISTAKE #4 - FAILURE TO CHECK FINANCIAL ASSISTANCE OPTIONS

• Depending on your income you may be eligible to receive assistance for your part B premium and Part D prescription drug coverage.  You can fill out an application to see if you qualify by copying and pasting this link in your browser https://secure.ssa.gov/i1020/start

MISTAKE #5 - SIGNING UP FOR THE WRONG PLAN

• There are 3 choices when you enroll in medicare.  You can either choose original medicare and add a prescription drug plan, choose a medicare advantage plan that combines part A, part B and part D into one plan, or you can choose original medicare and add a medicare supplement and prescription drug plan.  Each individual is different and depending on your lifestyle, health, amount of travel and financial situation you must pick a plan that suits you best.  Before signing up for any plan, compare the coverage and costs of each plan.

MISTAKE #6 - PAYING TOO MUCH FOR A MEDICARE SUPPLEMENT PLAN

• Medicare supplement plans are standardized plans with the exact same coverage no matter where you purchase.  But the costs can be different depending on which insurance company you buy from.  Make sure to shop around before signing up for a plan.

MISTAKE #7 - FAILING TO USE WWW.MEDICARE.GOV AS A RESOURCE

• There is a wonderful website with a plethora of information provided by the centers for medicare services that will answer any question you may have regarding medicare.  Be sure to visit this site to learn about all of your options.

MISTAKE #8 - FAILING TO UNDERSTAND OUT OF POCKET MAXIMUM

• This is very important for anyone enrolling in medicare.  There is no out of pocket maximum if you are enrolled in original medicare (part A and part B).  That means there is no limit on how much you will have to pay out of your own pocket if you were to undergo an expensive medical procedure.  All medicare advantage plans and medicare supplement plans have an out of pocket limit.  It is important you understand the financial predicament you could be putting yourself in if you only sign up for original medicare.

I hope that this information is useful to you and that you will take the time necessary to make the best decisions for your healthcare when you become eligible for medicare.  Best of luck in finding the right plan for your needs!!