Enrolling in Medicare: Avoid Common MistakesFew decisions carry as much weight as your Medicare plan enrollment. The plan you select will determine which doctors you can see, what’s covered and how much you’ll pay. When a task is this important, you don’t want to let common mistakes lead to bad outcomes. Keep reading to learn how to avoid five mistakes people make when enrolling in Medicare.
Mistake #1: Not Reading Your Annual Notice of Change
Every September, Medicare plans send out the Annual Notice of Change (ANOC) to members. This important letter tells you about any changes to your plan that will go into effect starting January 1.
These changes can be significant. Provider networks, prescription drug coverage and costs may be different for the coming year. You may not like the plan changes, or you may like your plan even more because of them. If you’re not paying attention, you won’t know.
How to avoid this mistake: Check your mail for the Annual Notice of Change. This letter should have arrived in September. If you haven’t received yours, contact your insurer.
Mistake #2: Not Comparing Plan Options
If you’re already enrolled in Medicare, and if your plan is still being offered next year, you may be content to stay in your plan without exploring your options. It’s certainly the easiest course of action – but it can also be a big mistake.
We’ve already seen how your plan may be changing for the new year. However, changes to your current plan aren’t the only variables to consider. Other plans may also be changing, and there may be new plan options in your area. There may be something that’s a better fit for your needs.
How to avoid this mistake: Take some time to see what else is available. If you don’t find anything you like more, you can rest easy knowing you’re still in the right plan for your needs. And if you do find something that suits you better, you’ll be glad you looked.
Mistake #3: Only Focusing on the Premium
When you’re living on a fixed budget, it can be easy to focus on monthly expenses. However, your monthly premium isn’t the only healthcare expense that matters. You’ll also face out-of-pocket expenses in the form of copays or coinsurance and deductibles. You may also need services or medications that your plan does not cover, leaving you responsible for 100% of the costs. If your budget doesn’t include these expenses, your finances could take an unexpected hit.
How to avoid this mistake: When comparing plans, take some time to add up all your expected healthcare costs. Make a list of the prescriptions you take and the appointments you think you’ll need. Add up the out-of-pocket costs under the plans you’re considering, along with the premium, and see how your actual costs compare. Also consider the plan’s annual out-of-pocket maximum. If you have major health problems during the plan year, this is what you could end up paying for treatment, so it’s good to know.
Mistake #4: Waiting Until the Last Minute (Or Later)
When you first become eligible for Medicare, you have a seven-month Initial Enrollment Period to select a plan. To make sure your coverage starts as early as possible – that’s typically the first day of the month you turn 65 – you need to enroll during the months before your birthday. If you wait until after your birthday, you’ll have to wait until the next month for coverage to start. And if you miss the Initial Enrollment Period entirely, you may have to wait until the General Enrollment Period, which runs between January and March every year.
Once you’re enrolled in Medicare, you have an opportunity to switch plans each year during the Annual Election Period, which runs from October 15 to December 7. The plan you choose will go into effect on January 1 of the next year. You can enroll at any time during the Annual Election Period, but it’s often smart to enroll early in the period. It’s a busy time for Medicare professionals, and you don’t want to miss your chance or have to rush your enrollment. Also, if you enroll early, you’ll have time to fix any issues that may arise before the Annual Enrollment Period ends.
How to avoid this mistake: Mark your calendar with the start and end dates of your enrollment periods and make an appointment with your agent as soon as possible.
Mistake #5: Not Seeking Expert Guidance
If you’ve ever been overwhelmed by Medicare enrollment, you may be making the mistake of trying to handle it on your own.
Independent insurance brokers typically represent multiple carriers (although they may not represent every carrier in your area), so they can give you multiple options and help you select one that fits your needs. They’re also paid via commissions from the carriers, meaning you don’t have to pay anything for their services.
How to avoid this mistake: Reach out to a local Medicare broker for assistance.
Heffernan Insurance Brokers can help you enroll in Medicare with confidence. Learn more.
