As you approach a transition into Medicare, there are many rules to get used to. As you absorb so much new information, it can be easy to feel overwhelmed. Many individuals miss certain guidelines and end up paying penalties and higher premiums as a result. Use the following information to focus your attention and avoid additional expenses. These are common costly mistakes that can be easily avoided.
- Not Signing Up At The Right Time
The best time to sign up for Medicare is during your initial enrollment period. This window spans the seven months surrounding your 65th birthday, starting from three months before your birth month and through three months after. Signing up after your birth month could cause a lapse in coverage due to a brief waiting period, so even in your initial enrollment period, the earlier the better.
If you miss your initial enrollment period, you can still sign up during the general enrollment window which is from January 1 through March 31 of every year. However, this coverage won’t start until July 1.
- Not Understanding Late Enrollment Penalties
If you miss your initial enrollment period and sign up during the general enrollment period, you will likely pay a late enrollment penalty. Additionally, for every 12 months, you delay enrollment in Part B Medicare, you could pay as much as 10% more in monthly premiums.
For every 12 months, you delay Part D coverage for prescription drugs, you will pay an additional 1% in your monthly premiums. Note that these are not one-time penalties. They will be added to your premiums and paid every month. Register early, do not decline your Part B coverage, add your Part D plan right away, and you will keep your premiums low.
- Not Understanding Out-of-Pocket Costs
You need to understand when you will be required to pay for medical services so not to be surprised by unexpected bills. The exact amounts will vary by plan.
- Your monthly expense is your premium, which covers your Part B and Part D plans. Most people do not pay any premium for Part A.
- Your deductible is the amount you must pay before any Medicare coverage will be paid. This is a flat amount that typically changes each year.
- When receiving a service covered by Medicare, you can expect to be covered up to 80%. The remaining 20% is your coinsurance and is your responsibility.
- Copayment is a fixed amount per service, such as a $25 office visit. This is not covered by Medicare.
Have Questions? We Can Help
The agents with Better Insurance Management are here to ensure you get the Medicare coverage you need and at the right time. Reach out to us today to learn more about Medicare and the steps you can take to avoid any costly mistakes!
