Most people become eligible to enroll in Medicare three months before they turn 65. This is also the period where many people retire or start thinking about retirement. However, there are some costly mistakes people turning 65 may make, especially with health insurance coverage and their retirement plans. In this guide, we’ll list the top 5 mistakes to avoid for people turning 65.
1) Not Preparing for Health Insurance
Under normal circumstances, most people become eligible for Medicare when they turn 65. Because of this, it is important to factor in health insurance in your retirement plans. If you fail to do this, you might encounter certain problems if you eventually need health insurance.
Medicare covers important healthcare costs for older citizens and qualified individuals under 65. However, there are some costs such as premiums, deductibles, and copayments that you should prepare for. Also, there are different parts to take note of. For example, Medicare is divided into various parts and each part covers certain medical expenses. If you do not take the time to speak with a Medicare expert like those with Swisher Insurance, you might enroll in the wrong plan or part.
Other than Medicare, there are other health insurance policies to consider, such as short-term plans, hospital indemnity, cancer plans, and more. If you are considering enrolling in Medicare, you should understand how it will work with policies such as these in the event you should need one for extra coverage.
2) Enrolling at the Wrong Time
It is quite possible to assume Medicare enrollment is automatic. While there is some truth to this, Medicare enrollment is not automatic for everyone. People who receive retirement or disability benefits from Social Security or the Railroad Retirement Board will be automatically enrolled in Medicare.
However, if you do not belong to any of these categories, you will have to enroll manually as soon as you become eligible. If you do not qualify for automatic enrollment and miss your Initial Enrollment Period, you may pay a late enrollment penalty if you enroll later.
3) Postponing Enrollment
Some people believe they do not need Medicare or other health insurance due to their current health status and being relatively healthy. However, the older you get, the more the risk of developing certain health issues increases. Postponing your Medicare enrollment can put you at a disadvantage if you later decide to enroll and need healthcare coverage. If you do not sign up when you turn 65, you will face late enrollment penalties if you later choose to enroll.
Regardless if you choose to not enroll in Medicare or other health insurance, you are putting yourself at risk by taking on potential costs that could arise from unexpected circumstances, and these potential costs can become fairly expensive without the proper coverage in place.
4) Choosing a Health Plan Based on Someone Else’s Opinion
If you are unsure of what health insurance plan you should enroll in, it is completely normal to seek advice and get guidance in the right direction. However, if you are not speaking with an experienced agent, like those with Swisher & Associates, you could waste your time and enroll in coverage that may not even be what is best for you. It is never a good idea to choose a health plan that worked for someone else but may not work for you.
To find out which plan, whether that be Medicare or something else, is best for you, you need to carefully analyze your health and financial standing and how it could be impacted in the future. This will give you more insight into finding a plan that can meet your coverage and budget needs.
5) Delaying Medigap Enrollment
Medigap or Medicare Supplement plans help to cover the out-of-pocket costs from Original Medicare. You can enroll in Medigap within six months of enrolling in Part B and being 65, and you have a guaranteed issue right during this period. This means you cannot be denied coverage from the insurer. If you decide to enroll later, you may have to pay more, or the insurer may reject your application based on your health status. That’s why it is crucial to review your costs and coverage to determine if extra coverage is needed so you can enroll during the correct time frame and keep your coverage within your budget.
If you’re turning 65 and heading into the beginning of your retirement years, it’s important that you weigh all your options regarding health insurance so you can receive the proper coverage at a reasonable price. To learn more about the different parts of Medicare and which part could benefit you most, contact us today at 502-259-0780.
