Three common Medicare mistakes to avoid.

1. Letting your plan renew on autopilot

Medicare Advantage and Part D costs and coverage can change from year to year. Review your Annual Notice of Change each fall, along with current provider and drug information. If your plan continues and you remain eligible, coverage generally renews automatically. A notice that your plan is ending needs separate attention.

What to check: changes to drug tiers, pharmacy pricing, copays and provider participation can affect your budget and access to care. Confirm the exact plan with your providers before making a change.

What to do instead: read your Annual Notice of Change and the sections of your plan documents that apply to your care. Compare next year’s options during October 15–December 7, using your current prescriptions, pharmacies and doctors.

2. Enrolling late in Part B or Part D

A Part B late enrollment penalty is generally 10% for each full 12-month period you could have had Part B but did not enroll, unless an exception applies. It usually continues while you have Part B. Part D can impose a penalty after 63 consecutive days without Part D or other creditable drug coverage following your initial enrollment period. Its calculation uses 1% of the national base beneficiary premium for each full uncovered month. Extra Help and other exceptions may apply.

What to do instead: before turning 65 or retiring, ask your employer benefits administrator and Social Security how your coverage affects Part B enrollment. Current-employment coverage, employer size and your eligibility circumstances matter. COBRA does not extend the Part B special enrollment deadline. Separately, ask whether your prescription coverage is creditable for Part D and keep that written notice.

3. Choosing a plan by the premium or the free extras

An advertised $0 plan premium or extra benefit can catch your eye. You generally still owe your Part B premium, and additional benefits may have eligibility restrictions. Hospital copays, the out-of-pocket maximum, whether your oncologist or cardiologist is in network, and whether your medical group can refer you to the hospital you want are harder to compare, and they are what determine your costs in a bad year.

What to do instead: compare premiums, expected medical costs and prescription costs. Medicare Advantage’s medical out-of-pocket limit is separate from the Part D drug limit; premiums and non-covered services generally do not count toward these limits. Check your providers and pharmacies, then consider any additional benefits.

Already made one of these?

Your options depend on your coverage, timing and circumstances. An enrollment exception or an appeal may help, but not every mistake can be reversed or every penalty removed. Ask us to help you understand your next steps.

Sources: Medicare late enrollment penalties and when to sign up for Medicare.