8 Costly Medicare Mistakes To Avoid

1. Failure To Take Advantage Of The Open Enrollment Period

You’ll need to know when each Medicare open enrollment period happens once you’ve enrolled when you reach 65. The Medicare open enrollment period runs from October 15 to December 7 each year.

You can update your insurance coverage and/or enroll in a new Medicare plan during open enrollment. It’s a good idea to reassess your plan and other options during this period. Because coverage and cost might change from year to year, it’s a good idea to research several plans to see if you can find a better deal.

2. Not Being Aware Of Your Out-Of-Pocket Costs

One of the most costly Medicare blunders people make in retirement is assuming it is absolutely free. However, while Medicare will likely cover a large amount of your medical expenses, you will still be responsible for some costs.

Many people make the mistake of merely comparing premiums when looking for insurance. However, you may incur significant out-of-pocket expenses as a result. In some cases, a higher premium can result in net savings over the course of the year.

The costs of each plan will vary depending on the following factors:

-Premium:

Your monthly premium is the amount you pay for your coverage. Even if you don’t use any health services that month, you must pay your premium.

-Deductible:

Your deductible is the amount you must pay for medical services before your insurance begins to reimburse you. The lower your deductible, the higher your premium will be in general.

-Copayment:

After you’ve met your deductible, the copayment is a set amount you pay each time you see a doctor or have a procedure done, such as $20.

-Coinsurance:

Some plans employ coinsurance instead of a copayment. After you’ve met your deductible, you’ll pay a percentage of the cost of a doctor’s visit or a procedure, such as 20% of the cost of an office visit.