4 Medicare Mistakes That Will Injure You – Motley's Fool

Millions of seniors rely on Medicare in retirement, but if you are not careful, you risk paying more for your health coverage and not taking advantage of the key benefits of the program. Here are some Medicare mistakes that you will surely regret.

1. Late registration

Eligibility for Medicare begins at age 65, but you have a period of seven months to register. Your initial registration period starts three months before the month of your 65th birthday and ends three months after the month of your 65th birthday. If you fail to register during these seven months, you can still register during the general registration period from January 1st to March 31st of each year. But not signing up on time could cost you a lot.

While Medicare Part A, which covers hospital care, is free for most registrants, seniors pay a premium for Part B, which covers doctor visits and diagnoses. If you wait too long to sign up for Medicare, you will receive a 10% supplement on your Part B premiums for each 12-month period during which you were eligible for coverage without being registered. Plus, if you wait too long to get a Part D drug plan, you will also be subject to a penalty. By registering on time, you'll avoid paying more than you need for Medicare, while ensuring you get the coverage you need, when you need it.

2. Do not revise your Part D plan from year to year

Once you have chosen a prescription plan from Part D, you may want to hang on to it for a long time because you will avoid the steps you have taken in the first place. But if you do not re-evaluate your Part D coverage from year to year, you may be paying too much for your medications.

Part D plan forms can change from year to year, so drugs for which you have excellent coverage are no longer treated in the same way. This is why you should re-examine your Part D options each year, even if your plan suits you at the present time.

3. Do not consider an Advantage plan

The extent of traditional Medicare coverage is somewhat limited and there are many key services, such as dental care, eye care and hearing, for which Medicare will not pay. Assuming these costs yourself could become quite expensive, which is why Medicare Advantage could be a better solution.

As an alternative to traditional health insurance systems, Advantage plans must offer at least the same level of coverage as initial health insurance – but in general they do much more. Advantage plans generally pay for dental care, vision care and hearing, and they are often just as affordable as traditional health insurance, or more.

It's cost-effective to consider an Advantage plan if your personal expenses for initial health insurance have taken up too much of your budget for your convenience. This is especially true if you tend to travel abroad often because Medicare will not pay for health services overseas, unlike many Advantage plans.

4. Spend your free wellness visit

As a Medicare member, you are entitled to a free health check every year and letting it pass is a gesture you could regret. It is not uncommon for health problems to be discovered during these routine visits, and if you do not program one, a medical brewing problem could worsen, which would compromise your health and you would cost more. You'd better take some time off your schedule than run that risk.

The more you manage your health insurance system, the more the program can do for you. Make sure you avoid these brutal mistakes that could hurt you financially and, worse, put your health at risk.