Medicare is a well-renowned form of health insurance coverage for adults aged 65 and above in the United States. However, choosing the right plan can be complicated as so many Medicare Advantage plans are available in the market today. With the help of professional medicare insurance brokers in Colorado, it is easy to simplify the overwhelming task of picking the right medicare plan. Even after finding a suitable plan, there is a lot to keep track of such as information related to various medicare parts and plans, enrollment period, etc. Any mistake done while signing up for medicare can be a costly affair. In this blog, you will get to know about some of the common medicare mistakes that you must avoid to get the right coverage that you need.
Not Signing up at the Right Time
One of the most common mistakes that you can make with medicare is not signing up at the right time. Correct timing plays an important role when it comes to enrolling in medicare. As per the government, the Initial Enrollment Period (IEP) is the time when someone approaches 65. The IEP is a 7-month period that starts from 3 months from the month in which a person turns 65 until 3 months after. If you miss signing up during this IEP, you will still have another chance to sign up during medicare’s annual general enrollment period which starts on Jan 1 and ends on March 31 of each year. However, there are a few disadvantages of enrolling during medicare’s annual general enrollment period, such as:
- The coverage will not start until July.
- Enrolling late will also likely increase costs. The monthly premiums for Medicare Part B which covers doctor’s visits and other outpatient services will likely to cost high.
- Signing up for Part B at the time of the general enrollment period will make you subject to a late enrollment penalty.
Not registering in a separate Medicare Part D plan with Original Medicare or Medicare Supplement
Whether you sign up for Original Medicare or a Medicare Supplement plan, your plan may not provide you a cover for prescription drugs. Here comes the role of Medicare Part D. This plan covers some of the cost of prescription drugs. Though it is not compulsory to enroll in Medicare Part D, there can be a few disadvantages of not signing up for the Medicare Part D plan:
- You may have to pay the penalty if you delay Medicare Part D coverage without good drug coverage in place.
- You will be liable to pay the penalty along with the premium amount of your selected plan during the entire enrollment period in Medicare.
Not having the right knowledge of how Medicare coordinates with your existing coverage
In case, you are still working after you turn 65, it is important to find out how your existing health insurance will coordinate with Medicare. If you are over 65 and working in an organization that has more than 20 employees, then your private health insurance will be considered your primary coverage. On the other hand, if you work in an organization with less than 20 employees, then work insurance will be your secondary coverage. The primary coverage will be Medicare. In the absence of enough information, you may:
- Have to pay a lot of money
- Not get the required coverage
Not knowing the difference between Original Medicare and Medicare Advantage Plan
Those who are eligible for Medicare have two options to get the benefits via original Medicare or a Medicare Advantage plan. Choosing the right plan depends on factors like:
- Health care requirements
- The location where you live
- Financial condition
- How much you travel
- The insurance your doctor accepts
It is important to know the difference between the original Medicare and Medicare Advantage plan. When you choose original Medicare, you may have to incur higher out-of-the-pocket expenses as there is no limit on out-of-pocket expenses. It doesn’t cover prescription drug costs. Besides, you need to pay a Part B premium to cover doctors and other health care providers’ services.
On the other hand, Medicare Advantage plans are offered by private insurance companies as a substitute for original Medicare. Unlike original Medicare, it covers prescription medication coverage. Moreover, it generally provides benefits that are not covered by original Medicare like dental and vision coverage. However, Medicare Advantage plans can also have an out-of-pocket cost. Plus, the network of Medicare Advantage plans providers is quite limited.
So, based on how much health care you require, your costs may vary with the original Medicare and Medicare advantage plan.
Choosing a Medicare Plan once and renewing plans every year
Another common mistake that people usually make in the case of Medicare is selecting the plan once and renewing plans every year. However, this is not the right way. It is important to note that premiums for plans change every year and their benefits as well. Therefore, you must compare your coverage every year and accordingly purchase your plan.
Conclusion:
Choosing the right Medicare plan without making any mistakes is quite an overwhelming task. You can seek the assistance of health insurance brokers in Colorado who can advise and guide you to choose the best plans. For more details on how Medicare insurance brokers in Colorado can help, connect with their professionals today!
Also Read: What is Medicare AEP & Why You Should Care About it?
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