The annual Medicare open-enrollment period has begun, and
there’s plenty of room for mistakes when choosing among hundreds of policies. Consumers
could end up paying too much for a plan that doesn’t cover what they need,
according to the National Council on Aging. The nonprofit advocacy group in
Washington offers guidance on its MyMedicareMatters website and has
created a list of the five biggest mistakes people make when enrolling:
1. Missing the date. The
initial enrollment period is based on your 65th birthday. If you or your spouse
is still working on your 65th birthday and you have qualifying company
health insurance, you can delay enrolling in Medicare Part B, which covers
outpatient services and medical supplies, without penalty. Once you stop
working and/or the company insurance ends, you have a special eight-month
enrollment period in which to sign up for Part B. But if you miss the window,
you pay a penalty on future Part B premiums.
2. Believing
Medicare supplement plans and Medicare Advantage are the same thing. Original
Medicare is a government fee-for-service program that people typically
supplement with a private Medicare supplement policy (as well as a Medicare
Part D policy for prescription drugs). The supplement policy can cover
out-of-pocket costs and doesn’t require authorization to see specialists. By
contrast, a Medicare Advantage plan is private insurance that takes the place
of original Medicare and works more like group insurance. It can cover programs
original Medicare doesn’t cover, such as vision or wellness visits, but can
limit your choice of doctors and hospitals.
3. Getting
overwhelmed and winging it. With so many different plans to choose
among, some people toss up their arms and just guess at enrollment.
4. Not applying for extra
help. There are billions of dollars available to help people with modest
retirement incomes pay for prescriptions, premiums, deductibles and
coinsurance.
5. Failing to
re-evaluate your coverage every year. Doctors and medications covered
one year might not be covered the next year. Confirm cost, copays, covered
providers and drug coverage to make sure your plan stays on track.
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