Key Takeaways

• Missing key enrollment deadlines can result in lifelong penalties or gaps in coverage, making it essential to know when and how to sign up.

• Certain Medicare options may offer benefits you didn’t realize you had, and failing to choose wisely could cost you money or necessary coverage.

Understanding Medicare Enrollment: Why It Matters

Enrolling in Medicare may seem straightforward, but many people make costly mistakes that could lead to unnecessary penalties, coverage gaps, or loss of benefits. If you don’t take the right steps at the right time, you could end up paying more for healthcare or missing out on important services. Let’s explore some of the most common mistakes so you can avoid them.

1. Missing the Initial Enrollment Period (IEP)

One of the biggest mistakes you can make is missing your Initial Enrollment Period (IEP)—the seven-month window when you’re first eligible for Medicare. This period starts three months before your 65th birthday month and ends three months after.

• If you miss this window, you may face a late enrollment penalty for Part B that lasts for life.

• Delayed Part D enrollment can also lead to additional costs if you don’t have other creditable drug coverage.

• Missing your IEP could leave you without insurance for months, as you may have to wait until the General Enrollment Period (GEP), which runs from January to March, with coverage starting in July.

To avoid this mistake, mark your calendar, and plan your enrollment early. If you’re still working and have employer coverage, confirm whether you need to sign up right away.

2. Assuming Employer Coverage Means You Can Delay Medicare

Many people believe they can delay Medicare enrollment if they have employer health insurance, but this isn’t always the case. The size of your employer determines whether you need to sign up for Medicare immediately or if you can postpone it without penalties.

• If your employer has 20 or more employees, you may be able to delay Medicare Part B without penalties.

• If your employer has fewer than 20 employees, Medicare typically becomes your primary insurance, and failing to enroll in Part B could leave you with unpaid medical bills.

• Retiree health plans or COBRA do not count as active employer coverage, meaning you could still face late penalties if you delay Medicare.

Always check with your employer’s benefits administrator to understand how your insurance works with Medicare.

3. Forgetting to Enroll in Part D Prescription Drug Coverage

Even if you don’t take medications now, skipping Medicare Part D when first eligible could be an expensive mistake.

• If you don’t enroll on time and lack other creditable prescription coverage, you’ll be charged a late enrollment penalty for every month you go without coverage. This penalty never goes away and gets added to your Part D premium for life.

• Some people mistakenly assume they can get by without drug coverage, only to face high costs later when they need medications.

• Even if you don’t need medication today, having a Part D plan ensures you’re covered if your health needs change.

To avoid unnecessary costs, compare plans and enroll in a suitable Part D option when you’re first eligible.

4. Choosing a Medicare Plan Without Comparing Options

Many enrollees rush into a Medicare plan without fully exploring their choices, only to discover later that it doesn’t cover their healthcare needs or costs more than expected.

• Medicare plans vary widely, and the best choice depends on your health conditions, doctors, medications, and budget.

• Failing to review plan options each year could mean missing out on better benefits or paying higher premiums unnecessarily.

• Medicare Open Enrollment occurs from October to December, allowing you to switch plans if your current one isn’t working for you.

Take the time to research your options or seek guidance from a licensed agent to make sure you’re getting the best coverage for your situation.

5. Not Signing Up for Medicare on Time After Leaving a Job

If you delayed Medicare because of employer coverage, you must act fast once that coverage ends. Many people assume they can sign up anytime, but strict deadlines apply.

• You have eight months from the end of employer coverage to enroll in Medicare without penalties.

• If you miss this Special Enrollment Period (SEP), you may have to wait until the General Enrollment Period, leaving you uninsured for months.

• Those who don’t act in time may face a lifetime late enrollment penalty on Part B and potential gaps in coverage.

Make sure you sign up as soon as possible after leaving employer coverage to avoid paying more than necessary.

6. Overlooking Extra Benefits and Cost-Saving Programs

Many people don’t realize they may qualify for additional Medicare benefits and cost-saving programs. Overlooking these opportunities could mean missing out on valuable assistance that helps reduce healthcare expenses.

• Medicare Savings Programs can help lower Medicare Part B premiums, deductibles, and coinsurance.

• Extra Help is available for those who need assistance paying for Part D prescription drugs, potentially saving thousands of dollars per year.

• State and federal programs offer additional benefits like dental, vision, and hearing coverage, but many enrollees don’t take advantage of them.

If you’re struggling with costs, check if you qualify for financial assistance to make the most of your Medicare benefits.

Take Control of Your Medicare Enrollment

Avoiding these common mistakes can save you money, prevent coverage gaps, and ensure you receive all the benefits you’re entitled to. Medicare rules can be complex, but understanding enrollment deadlines, coverage options, and potential penalties will help you make informed decisions.

If you’re unsure about the best path forward, speak with a licensed agent listed on this website for expert advice tailored to your needs.