1. Not knowing when to sign up for Medicare

If you don’t sign up during your IEP, you will receive a PENALTY.  You will get another chance to enroll during Medicare’s annual general enrollment period; however, keep in mind that your monthly premiums for Medicare Part B will likely cost you more because of the penalty.

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 2. Not understanding Part B and Part D late enrollment penalties

The penalty doesn’t apply if you have job-based insurance or are still under your Special Enrollment Period.  For each year you delay enrolling in Part B, your monthly Part B premium may be 10 percent higher.  For every 12 months you delay signing up for a Part D plan, your monthly premium may be 1 percent higher.

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Part D plans cover prescription drug costs.  You won’t have to pay the Part D penalty if you can show Medicare that you have drug coverage as good as that provided by a Medicare Part D plan.

 

 3. Unaware of out-of-pocket expense

Medicare insurance pays a large portion of the medical bill for those enrolled, but you need to be prepared for out-of-pocket costs. The following is a breakdown:

• Premium: Each part of Medicare may have its own monthly premium. Most people have no premium for Part A, which covers hospital services. You will be responsible for the Part B premium, which will be deducted from your monthly benefit if you are collecting Social Security.

• Deductible: Before Medicare starts paying for the cost of your care, you may have to pay a flat amount, called a deductible. In original Medicare, Part A has a benefit period deductible; Part B has a calendar year deductible.

• Copayment: Copayments can vary.  This is a fixed amount you pay for specific services.

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 4. Choosing a plan that doesn’t include your primary care physician or line of Doctors.

If you choose to enroll in a Medicare Advantage plan (also known as part C), check with your providers to learn which plans they accept. If you have questions, contact your plan for more information.

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 5. Unaware of the Annual Enrollment Period.

The Annual Enrollment Period (AEP) takes place on October 15 – December 7 each year, and during that time, you can reevaluate your healthcare options.

 

For new Medicare enrollees, understanding the basics of Medicare can be overwhelming, and mistakes are common.  If you need assistance before enrolling or have questions regarding the basics of Medicare, contact a skilled license representative at (800) 671-1880 to assist you with any questions or concerns you may have.