Medicare is confusing.
It’s even more confusing if you’re trying to figure it all out on your own.
It seems like just when you thought you had it all figured out, something crazy hits your doorstep from left field.
We’ve seen it time and time again, and it makes our hearts hurt every single time.
So, it’s now our mission to make sure that you recognize these 3 red flags before you and Medicare commit to each other until death do you part.
OK, so that’s a bit dramatic, but really, watch out for these 3 big mistakes!
#3 Missing the sign-up window
You have a 7-month window to sign up for Medicare. Three months before you turn 65, your birthday month, and 3 months after.
If you miss it… there’s a penalty. And penalties stink.
Part A is penalty-free, and there’s no reason you shouldn’t jump on it. It’s the free part of Medicare.
However, Part B will soon become a growing problem. The penalty is permanent, and it doesn’t stop increasing. For each year that you skip on signing up, the premium grows by 10%.
And let’s not forget about Part D – the drug plan. If you hold off on Part D, you’ll get a 12% increase on your premiums every single year.
In other words, your Part D premiums increase by 1% for every month that you don’t have drug coverage.
There’s always exceptions to the rule, and that’s why you should always consult a Medicare professional. (Like us!)
#2 Falling for Medicare Advantage’s low price point
Medicare Advantage sounds like a great deal — especially with the cheap premiums. However, with cheap premiums come expensive problems.
The first problem is the limited network. There are a lot of doctors that don’t accept Medicare Advantage. It could leave you with either no doctors in your area, or a doctor that’s not your favorite.
What’s the point of having insurance if no one takes it, you know?
Also, the premium may look like a good sticker price, but there’s still hefty deductibles and co-pays. We’ve seen those range anywhere from $3,000-$7,000.
Finally, if it doesn’t work out and you want to switch to Medigap, it’s not exactly the easiest. It’s actually a pain in the butt.
While Medicare Advantage can work for some, especially those in really large cities, it’s often not the best choice for most people.
It’s always best to weigh your options, though, so don’t rule anything out until you check out your own situation and your own network of coverage. Maybe you’ll get lucky! [READ MORE about how Medigap and Medicare Advantage differ]
#1 Thinking Medicare covers everything
Medicare does cover quite a bit, but don’t let that fool you.
Here’s a complete list of where Medicare leaves you hanging:
- Long-term care
- Cosmetic surgery
- Dental care (including dentures)
- Hearing aids
- Eye exams
- Acupuncture
- Routine foot care
- Deductibles, co-pays, and coinsurance
The obvious killer here is the last item on the list: deductibles, co-pays, and coinsurance.
That adds up, and it adds up pretty quickly.
That’s why the majority of those enrolled in Medicare opt to add on a Medigap plan. Medigap plans cover those extra costs to make sure you still have a heavy(ish) wallet.
There’s also other types of insurance to pick up some of those other bills that will leave you with sticker shock.
For example, long-term care insurance picks up the $8,000/month bill from the nursing home. You can also purchase dental insurance to go with Medicare.
We do recommend that you have an experienced and trustworthy advisor or agent review your current Medicare status to make sure you’re not jeopardizing your financial future.
Even if you choose not to purchase a certain type of insurance, at least you’ll be aware of the potential costs.
And we’d love to be your go-to guys.
If you have any questions about these 3 Medicare red flags, don’t hesitate to reach out to us!
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65Medicare.org is a leading, independent Medicare insurance 
agency for people turning 65 and going on Medicare. We have worked with 10,000+ Medicare-eligible individuals over the last 10+ years, assisting with understanding and comparing the plans. You can get a list of Medigap quotes in your area. Or, if you have any questions about this information, you can contact us online or call us at 877.506.3378.