1. Not Enrolling in Part B at the Right Time
Enroll into Part A and B 3 months before, the month of, or 3 months after your 65th birthday. If you or your spouse work for a company with 20 employees or more, you can wait until you retire or lose group coverage.
Not enrolling will result in a 10% penalty per year that you delay enrollment for the rest of your life.
2. Not Analyzing Your Prescription Coverage
There are several plans with differing coverage on your prescriptions – it is important to know your drugs are covered and at what cost.
3. Not Knowing the Difference Between Medicare Advantage Plans and Supplements
– Medicare Advantage Plans generally have less expensive to $0 premiums, but have an “in network” component. Medicare turns over primary insurance to the insurance company. Advantage plans may also have additional benefits such as dental, hearing aids, eye glasses, gym memberships, and prescription drug coverage.
– Staying with Original Medicare and choosing a Supplement plan and a Prescription Drug Plan allows you the freedom to choose any doctor that accepts Medicare without referrals. This allows you to get a drug plan that is tailored to your needs. The best Supplement Plan is Plan F, which pays 100% for most of your medical care with no copays or deductibles.
4. Not Evaluating Your Retiree Options
Comparing your group plan with a Medicare Plan is important. You may have a top notch group plan that covers the majority of your costs, or you may be able to enroll into a Medicare plan that may be less expensive and offer better coverage than your group plan.
5. Selecting a Medicare Plan Based on Unreliable Information
Everyone’s situation is different. Choosing a plan your neighbor has or because you saw an ad could be a huge mistake and cost you in the long run.
Not all Medicare agents are the same. Many agents are only contracted with one company which may not be the right product for you. Do Not Take Advice from Agents That Only Work With One Insurance Company. Make sure you’re dealing with a licensed Insurance Broker that carries multiple insurance companies and specializes in Medicare Insurance.
Be selective with who you deal with and make sure they are looking out for you before you make decisions that could affect you financially for the rest of your life.
Written By Rafael Nunez, Jr – Medicare Insurance Broker with the Nunez Agency – (312) 492-6000