07/19/2021
Did you know every day about 10,000 Americans turn 65 and are faced with enrolling into a program that can best be described as an unnecessarily complex range of options?
To address widespread confusion, our guide provides information on Medicare simplified enrollment.
According to Fidelity, as of 2019 the average 65-year-old American couple can expect to pay $285,000 throughout their retired years. Being an average, many retirees will spend considerably more without adequate health insurance.
And, this doesn’t include long-term care facilities, if required.
Besides being downright complicated, somehow, we need to gaze into a crystal ball and foresee future medical needs. An informed choice not only saves you money, it could very well extend your life.
Common Medicare Enrollment Mistakes
This might be one of the most important decisions that could haunt you for years to come. Delaying or making the wrong choices could cost you thousands of dollars or more. Further, it may impact your quality of care for the rest of your life.
Right off the bat, let’s get to the common mistakes on Medicare enrollment.
1. Missing the Initial Enrollment Period
You become eligible for Medicare upon your 65th birthday. Your initial enrollment period is seven months long. This includes the three months prior to your birthday, your birth month, and three months after.
If you miss this period, you may incur late enrollment penalties.
If you don’t register for Part B (medical insurance), the late enrollment charge is an increase of 10% in the monthly premium for each 12-month period delayed. This would remain for the rest of your life!
The exception to this is when you (or your spouse) are still working and covered under a group health plan through an employer. Under these situations, you may be eligible for a Special Enrollment Period (SEP).
2. Automatic Enrollment Without Fully Reviewing Your Options
You’ll be automatically enrolled into “Original Medicare” if you’re receiving Social Security benefits. This includes Part A (hospital insurance) and Part B (medical insurance). Unfortunately, this coverage only includes basic expenses.
There are many additional facets of health care expenses that should be considered. For instance, dental, vision and co-pays are not covered.
Once the initial enrollment period is over, adding additional insurance often results in penalties and much higher costs.
3. Opting Out of a Prescription Drug Plan
You might be as “healthy as a horse” and decide this is an unnecessary expense. The problem is....
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Did you know every day 10,000 Americans turn 65 and are faced with enrolling in a program that can best be