5 Medicare mistakes that could cost you
You have choices when it comes to Medicare plans. But the most important decision might be choosing the right plan to meet your needs in the first place.
With the Medicare Annual Enrollment Period (AEP) upon us – running from October 15 through Dec. 7 – now is your chance to dig in and make sure you’re not rushing a decision that may cost you in the long run next year.
Here are five common mistakes that you may want to watch out for during Medicare annual enrollment.
1. Don’t allow the automatic plan renewal to make your choice for you
If your Medicare Advantage or Part D plan continues to be offered, your enrollment generally renews on January 1 unless you choose another coverage option.
Automatic renewal may make your life easier in the short term, but it might not be the best way to make your Medicare decisions. Plans may change what they cover from year to year, including what you will pay in deductible, premium, copay or coinsurance amounts. For Part D, the drug formularies also can change, which might mean changes in coverage and cost.
2. Don’t ignore your plan’s Annual Notice of Changes (ANOC)
Each fall, you receive an Annual Notice of Change (ANOC) from your Medicare Part D or Medicare Advantage plan (it should have already hit your mailbox). This document explains changes in your plan benefits or costs for the upcoming year. The changes may affect your health care and your budget, take time to learn about your ANOC.
3. Avoid basing your plan choice on the premium alone
It’s easy to focus only on premiums when looking at Medicare costs. But it’s a good idea to look at the big picture, too.
A plan with a $0 or low monthly premium may charge a medical or prescription drug deductible or have higher copayments. You might prefer this if you rarely go to the doctor and don’t take many medications.
It’s important to think about all the out-of-pocket costs as well as your health care needs when choosing a plan. For example, many Medicare Advantage plans offer routine vision, hearing and dental coverage – whereas Original Medicare does not. There are also considerations with regards to enrolling in an HMO versus a PPO, and how care coordination might be a bedrock of a plan.
4. Don’t pick a plan just because your spouse or friend has it
You might count on a friend’s word when deciding what new restaurant to try, but a Medicare plan is an extremely personal choice. What works for one person may not fit with the needs of another.
You may have multiple plans to choose from, so it’s a good idea to look at all your options, keeping your health care needs and budget in mind. Coverage and costs can vary quite a bit from plan to plan.
5. Don’t assume you don’t qualify for help with Medicare costs
Several programs offer financial assistance with Medicare premiums and other costs. You may want to look into them, even if you think you might not be eligible. Call your State Health Insurance Assistance Program (SHIP) office to discuss your situation.
Finally, Extra Help is a Medicare program that can assist with prescription drug coverage premiums, deductibles, and more qualifying individuals with limited income and resources.
When is Medicare Annual Enrollment?
The Medicare Annual Enrollment Period runs from October 15 through Dec. 7 and offers a great opportunity to review your current plan and health needs so you can make an informed decision about your coverage for the coming year.
To view plans in your area, visit UHCMedicareHealthPlans.com.
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