6 Best Way to Avoid Costly Medicare Mistakes

Every state has senior citizens or people unable to manage their expenses due to disability. The federal government has launched a health insurance program named Medicare for these kinds of people.

According to Statista, 62.6 million people were enrolled in Medicare plans in the United States. Out of all 62.6 million people, 54 million were beneficiaries due to age, while the remaining were disabled people.

However, different states have different income ranges for the medicare programs. If you are somewhere in Texas, you can get benefits from medicare Texas plans. It’s income ranges from $1,359 to $1,529 per month. Similarly, Medicare Florida spends an average of $11,000 on a single beneficiary every year.

Despite all the benefits of medicare, people make mistakes and find medicare more costly. However, you can avoid these mistakes and enjoy all the benefits of medicare. But how? Don’t worry! In this ultimate guide, we will let you know how to avoid costly Medicare mistakes. Are you ready?

Let’s start!

1.  Enroll During Initial Enrollment Period

Are you already receiving Social Security or Railroad Retirement Board benefits? If yes, then you do not need to worry. The government will automatically enroll you in part A and part B of the Medicare plan four months before your 65th birthday. However, medicare part A provides inpatient benefits while medicare part B covers outpatient services.

But if you are not a member of the Social Security or Railroad Retirement Board, then you need to enroll yourself three months before you turn 65. The enrollment period for the eligible beneficiaries is almost 7 months.

However, people often miss their initial enrollment period. But don’t worry! You can register during the Medicare General Enrollment period, which starts on January 1 and ends on March 31.

However, if you do not qualify for free Part A premiums and do not purchase them when you first become eligible for Medicare, your monthly premium may increase by 10%. You must pay the late enrollment penalty for twice the number of years you did not enroll.

So, always enroll on time to avoid penalty fees and top-up costs.

2.  Enroll for Medicare Part B on Time

The Medicare health insurance program is divided into four basic categories. Out of which medicare part B covers all outpatient services. It includes

  • Appointments with doctors
  • Precautions, such as specific examinations and screenings
  • Vaccinations against the flu
  • Mental health care (outpatient)
  • Advice on alcoholism
  • Chemotherapy
  • Physical activity
  • Diabetes self-management therapy, supplies, and screenings are all available.
  • Wheelchairs and other reliable medical supplies

You have to signup for medicare part B if you do not have any creditable coverage like employment. However, if you fail to do so, you will have to pay a heavy fine. The penalty can be an increase of a 10% monthly premium fee for each 12-month period you could have had Part B. This penalty is usually assessed for as long as you have Part B.

However, you can avoid these heavy fines by enrolling in medicare part B at the specified time.

3.  Do Not Go Out of the Network

Another mistake people often make is going out of the network of their medicare advantage plan. If you have decided to get your medical coverage from any private Medicare Advantage Plan, you need to be very concerned about the hospitals and doctors covered in your plan.

However, the Medicare Advantage Plan won’t cover your medical expenses if you go out of the network without any emergency.

If your medicare plan does not cover your doctor, don’t worry! There is a solution to this problem too. You can switch Medicare Advantage plans each year from October 15 to December 7. Also, you can use any medicare plan finder to compare out-of-pocket costs for your medications and general health condition under the plans available in your area.

After you’ve narrowed your options down to a few plans, contact the insurer and your doctor to ensure they’ll be in the network for the upcoming plan year.

4.  Switch Medicare Advantage Plan Mid-Year, If Required

Although the open enrollment for the medicare advantage plan runs from 15 October to 7 December each year, you can also switch your plan from January 1 to March 31.

Let’s suppose you move to an area that is not covered by your medicare advantage plan. In this case, you may have to go out of the network. But the medicare advantage plan does not cover your medical expenses. However, you can switch your medicare plan mid-year to avoid any inconvenience and extra bills.

5.  Always Remember, Increase in Income Boosts Your Medicare Premiums

As the medicare plan B premium depends on your income, the increase in income can also boost your premiums. For the year 2022, If you make $88,000 or less ($176,000 or less if you file a joint tax return), you will pay a $170.10 monthly premium.

However, if you get an increase in your income, you will have to pay more for the plan B premium. Let’s suppose your income increase by only $1. your premiums can boost from $170.10 to $219. So always keep this factor in mind before signing up for Medicare Plan B Premium.

6.  Pick the Right Medigap Plan

If you purchase a Medicare supplement plan within six months of enrolling in Medicare Part B. You can choose any plan in your area, regardless of whether you have a preexisting medical condition.

However, if you try to switch plans after that, insurers in most states have the right to refuse you or charge you more because of your health. It is critical to choose your strategy carefully.

Some states allow you to change plans regardless of your health. Also, some insurers allow you to change plans without taking a new medical exam. So always ensure to understand all the terms and conditions before signing up for any plan.

Taking Away!

With healthcare costs constantly rising, it’s critical to understand your Medicare options to help offset these costs, particularly during retirement. And while navigating the Medicare tunnel isn’t always easy, there are a few common and costly blunders you can avoid with some extra effort.