A dear friend of mine once shared how overwhelmed she felt by the whole idea of signing up for Medicare. It wasn’t just the process that threw her off, but the emotional weight of it all—feeling like this was a “milestone” that meant she was getting older. Turning 50, 60, and even 65 didn’t bother her, but having to go on Medicare? That was a different story.
Thankfully, she got over that and approached the Medicare signup process thoughtfully and carefully. But that’s not the case for everyone. If you’re nearing Medicare eligibility age, make plans now so you don’t let yourself fall into the common traps.
Here are five mistakes you’ll want to avoid:
- Missing your enrollment window. Your Medicare Initial Enrollment Period lasts for approximately seven months, starting three months before you turn 65 and ending three months after the month you turn 65.
If you fail to sign up during that time, you may have to pay a late enrollment penalty. These penalties are not one-time fees; they’re added to your monthly premium and are usually charged for as long as you have that type of coverage—which, for most people, amounts to a lifetime penalty.
There are some exceptions. For example, if you or your spouse are still working and have health insurance from your job, you may be able to wait to sign up for Medicare without paying a late enrollment penalty. However, many companies stop providing coverage to employees who are eligible for Medicare. Don’t make assumptions. Find out what applies to you.
- Choosing the wrong plan. When you sign up for Medicare, you have two basic options. One is original Medicare, which includes Medicare Part A (hospital insurance) and Part B (medical insurance). You can add to that coverage with an optional drug plan and/or Medicare Supplement Insurance (Medigap). The other option is Medicare Advantage, also known as Part C, which is a private insurance alternative to original Medicare. There are several types of Medicare Advantage plans, and the costs and coverages vary widely.
Making the wrong choice can be expensive and may limit your access to care. Don’t rely on advertisements or sales agents to figure out what’s best for you; thoroughly research everything that’s available to you before you make a decision.
- Going at it alone. Don’t travel the Medicare signup road alone. Find a trusted professional who understands the system and will work on your behalf to explain all your options and make sure you get what you need.
It’s also a good idea to talk to family and friends who are on Medicare and learn about their experiences. But take what you learn from them back to your professional advisor for clarification on how that might apply to you.
- Waiting until the last minute. Researching Medicare is not the most exciting way to spend your time, but if you procrastinate, you’ll be doing yourself a serious disservice that could lead to an expensive mistake.
- Being impulsive. Once you’ve made your decision, give it some time to be sure it’s right before you sign up. Sleep on it, pray about it, discuss it with your spouse—and be willing to change your mind if you realize you need to.
If you’ll be turning 65 soon and you need a referral to a professional who understands Medicare and is trustworthy, jump on my Calendar. I know someone who can help.
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