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As everyone knows, the best way to avoid making mistakes is by asking questions! The best source to answer these questions is through experts, and the same goes for Medicare. 4 Medicare Mistakes to AvoidAs a Medicare expert, I know that many of us can be baffled by the whole Medicare system and it can seem like a minefield to navigate, but in my helpful article, I will help you to discover 4 Medicare mistakes to avoid. Even tiny mistakes can be costly in terms of time and money so let’s discover some of the most common mistakes that people make when signing up for Medicare. Let’s start with the short answers first.
Let’s get into a little more detail. We all know how frustrating it can be looking through the reams of information concerning your Medicare sign-up. Many people soon realize that without an Independent Medicare Expert on board you could end up making those little mistakes that mean you will end up paying dearly further down the line. In my role as a Medicare insurance broker in the Missouri area and beyond, talking with clients, I’ve discovered there are usually 4 most common mistakes made when people are in the process of signing up with Medicare. Let’s head into mistake number one… 1. Signing up on the same plan as your spouseAlthough you may automatically think that you should match the plan of your spouse, it’s important to remember that this isn’t always in your best interests. These are the crucial points to remember before you sign up on the same plan as your partner:
It’s for these reasons that you should shop for your Medicare plans independently. This brings me right to another related common mistake. You are NOT automatically covered by Medicare when your spouse signs up. When talking to my clients in St. Louis, Missouri, and those from all areas of the U.S, it seems a common assumption that as soon as your spouse signs up for Medicare, you will also be included in that coverage. Unfortunately, this isn’t the case, unlike group coverage you may have had previously. In group coverage it is likely you were both covered under the group plan, but Medicare works differently. This means that you won’t be covered automatically by your spouse’s policy. It’s really important you understand that when your spouse signs up, you will also need your own plan. “This means that you won’t be covered automatically by your spouse’s policy.” Ok, so with that in mind, let’s go on to discover No.2 of the most common mistakes that are often made when signing up for Medicare. 2. Not signing up during the enrollment periodWhen turning 65, there is what is known as ‘an initial enrollment period.’ This period lasts for three months only. The period of time can be varied as outlined below.
Important! Unless you take social security later, you will be automatically enrolled in Part A. This means you have to opt into Part B by signing up or otherwise there will be penalties to pay. These penalties are pretty severe so make sure you sign up in the correct enrollment period. You will be penalized 10% for every month you haven’t signed up for Part B of Medicare if you miss the enrollment period. If you miss the deadline for enrollment you will also be liable for a prescription drug plan at 1%. It’s crucial to sign up on time and within the stated enrollment period. Another crucial enrollment period is the ‘annual enrollment period.’ This is often referred to as EP. Currently, this period is from October 15th to December 7th, so this is a good time to shop for a plan which may be better than the one you are currently on, for example. Medicare supplements: If you’re interested in a supplement plan you have six months from when you enroll to sign up on a guaranteed issue for Medicare supplement. This can mean that if you have a history of health issues such as cancer, stroke or heart attack, there won’t be any underwriting if you wait until after the guaranteed issue period. This is another reason to stay within the parameters of the enrollment period and sign up within them. 3. Not fully understanding out-of pocket-costsAlthough not so much of a mistake, I realize when speaking to my clients that it can be difficult to understand these costs, and often they can cause difficulties to those signing up for Medicare when people aren’t paying close attention to them. Each plan will give you details of the maximum out-of-pocket costs. The costs can come in four different ways.
It’s crucial to make sure you understand these out-of-pocket costs. After consulting with my customers, many of them are struggling to understand the differences. If this is the case, always make sure you get help from your agent or an expert in Medicare to help you more easily navigate these costs so there won’t be any unpleasant surprises in the long run. An experienced Medicare agent will help you to unravel the differences by guiding you through the policy and help you understand what to expect. As a useful extra, some plans have built-in calculators to help you understand the finance more easily, while other plans will allow you to type in your prescription requirement and give you an exact amount they will cost year to year. The key takeaway as with all Medicare is adequate planning at the beginning so that surprises such as your plan costing you up to three times more than you anticipated can be avoided. 4. Choosing a plan that doesn’t include regular prescription drugsWhen signing up for a Medicare Advantage plan or a medical supplement make sure you check the carrier’s websites. This is for two reasons. First, to make sure your doctor is included and second, to ensure all your current and regular prescriptions are listed. This helps you to avoid surprises further down the line when you need to visit a doctor or refill your prescription and you find out that you aren’t covered under the plan. Make sure your agent knows where to find the formulas and the lists for the doctors. Your agent should be able to quickly check for you and make sure your own doctor is within the network. **Bonus mistake: Not asking for help! Take the time before signing up for any kind of Medicare plan to research an expert in Medicare and someone who can advise you fully before you commit to any plan. You may be thinking about starting an Advantage plan, a supplement, or you just want to choose with Original Medicare. Whatever the type of plan you decide on, make sure you find an expert who can give you answers to your questions without being too pushy or more interested in their sales figures. And finally… I hope that I’ve given you some great helpful guidance on some of the most common mistakes when it comes to Medicare plans. If you have any further questions or would like to get in touch with me, Jo Hutchinson, we can work through any questions you have and help you make the best, unhurried decisions on your Medicare plans. Also, make sure you drop by my YouTube channel for more information and to put a face to the name! About the AuthorHello! I’m Jo Hutchison and I’m the owner of Founders Life & Health. I’m a proud baseball mom, lover of live music and all things potato.. My husband and I have two great boys and two lazy hound dogs. My boys play a LOT of baseball so when I’m not helping my clients we can almost always be found on a baseball field somewhere in the Midwest.
I’m a member of NAIFA (National Association of Insurance and Financial Advisors) and a member of NAHU (National Association of Health Underwriters). I spend a good deal of my time working on educational outlets and working on healthcare policy change to help bring comprehensive and AFFORDABLE coverage to everyone. Nothing makes me happier than sharing the tidbits of knowledge that I know about the Medicare and health insurance world so people can make the most informed decisions about what plans they need. The most important thing that I have learned through the years in this business is that each client has very different needs. Our goal is to listen to you, assess your needs, and use our experience and knowledge to help you make informed decisions about your health care coverage. We are an independent brokerage so we advocate for our clients, not the insurance companies.
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