For most Americans over 65 years old, Medicare is an excellent program that helps cover medical expenses. Although it is not exhaustive in its coverage, choosing the right Medicare plan can help seniors keep financial debt at bay. As with any insurance, understanding the fine print of any insurance cover is vital. Read on to learn about the four most common, but avoidable mistakes people make when choosing Medicare.
Not adhering to the enrollment window
If you have social security, when you turn 65, you are automatically enrolled for Medicare with premiums deducted from your benefits. If you don’t already have Social Security and opt for Medicare, you have to sign up in the stipulated period. This enrollment window begins three months preceding the month you turn 65 and ends three months after. Delays can lead to surcharges, higher premiums, and could even leave further gaps in your coverage.
Not planning for the cost of premiums
Seniors often depend on income from their Social Security to cover their monthly expenses. With premiums for Medicare being automatically deducted from these benefits, not factoring in these costs puts a further strain on already limited incomes.
Buying insufficient coverage
While Medicare Part A covers some medical expenses, it does have exclusions. Parts B, C, and D are available with additional premiums and provide more comprehensive coverage. This additional coverage includes dental and vision care, and costs of prescription drugs. Opting for the Medicare Advantage plan can also help cover these extra expenses. Depending only on Part A or the free coverage could leave you with a high financial burden. Buying that additional cover is your best bet in the long run.
Assuming family cover
A fact often overlooked and one that could end up being a costly mistake is that Medicare covers only individuals. To claim benefits, your spouse will have to qualify for Medicare under a separate plan. Family members who are eligible for Medicare also need to have attained 65 years of age and contributed towards Medicare fees for at least ten years.
Making a well-informed decision, along with proper research, can help you gain the most from a Medicare plan. Speak to your financial advisor before choosing additional Medicare plans.