Millions of retirees are in the process of Medicare open enrollment, which continues through December 7, but many are finding the process challenging. According to a July report from a healthcare consulting firm, many seniors are overwhelmed by Medicare advertising; some don’t comprehend the differences between Original Medicare and Medicare Advantage; and just four in 10 people go through their plan alternatives each year.
That results in missed Medicare open enrollment opportunities, such as failing to ensure that your providers are in-network for the following plan year and forgetting to compare your Medicare Part D prescription drug coverage to other available alternatives.
Here are a few examples of typical Medicare open enrollment mistakes:
Not checking doctors
Those with a Medicare Advantage plan usually get medical care from providers in the plan’s network, which might change at any moment. Make sure your preferred doctors are still in the plan’s network in 2023 before deciding to stay with it.
Since websites and provider directories might not always be up to date, this may necessitate some research on your side.
The best idea is to call the doctor’s office directly and confirm with them.
Not comparing drug plans
Whether you have Original Medicare or Medicare Advantage, the prescription medication coverage comes from a private insurance provider, and it may vary each year. In 2023, your regular prescription drug may cost more, or your insurer may refuse to cover it. (A different plan may cover it for less.)
It’s worthwhile to enter your medications into Medicare.gov to see what plans are recommended for you. Pro tip: If you log in to your Medicare.gov account, your prescription history is already there.
That will make it much easier for you to shop for next year. You won’t have to enter everything line by line and milligram by milligram.
Assuming all doctors accept PPO
A preferred provider organization (PPO) plan is health insurance that enables members to see out-of-network providers for a fee. People frequently believe that since they have a Medicare Advantage PPO, they may see any doctor they desire. However, providers don’t always accept out-of-network coverage.
If providers don’t want to bill the plan, they might deny someone at the point of service.
For example, there’s a clinic in Florida that’s out-of-network with most Medicare Advantage plan, and they won’t book appointments for people with such coverage.
For a complete provider choice, choosing Original Medicare plus Medicare Supplement Insurance, or Medigap, is the most practical approach.
Being persuaded by advertisements
Medicare open enrollment season brings a rush of Medicare advertising, and Medicare Advantage plans have enticing features such as no premiums and partial coverage for hearing, dental, and vision care.
However, purchasing health insurance is about more than just the extra perks. And, most of the time, they don’t cover much dental. Hearing aid coverage is also quite restricted, and that’s not a good reason to change your plan, so be careful.
More importantly, ensure that the plan covers your doctors and medicines for the following year.
Waiting too long
Medicare open enrollment closes on December 7, but you shouldn’t wait until the last minute, or even the last week, to begin your research. If you have questions, you can seek assistance from organizations such as the State Health Insurance Assistance Program (SHIP). SHIP counselors can provide free guidance with your Medicare options, but they are often overburdened.
SHIP programs are filling up many weeks in advance in various regions. If you need help, don’t put it off.
Shiphelp.org can help you discover your nearest SHIP.
Contact Information:Email: mackhales@bellsouth.netPhone: 7705402211Bio: Mack Hales has spent the past 4 decades helping clients prepare for retirement and manage their finances successfully. He also works with strategies that help clients put away much more money for their retirement than they could in an IRA or even a 401k. We involve the client’s CPA and/or their tax attorney to be sure the programs meet the proper tax codes.
Mack works with Federal Employees to help them establish the right path before and after retirement. The goal is to help the client retire worry-free with as much tax-free income as possible and no worries about money at risk of market loss during retirement.
Mack has resided in Gainesville, GA since 1983, so this is considered home. Mack is married to his wife of 51 years, has two boys and five grandchildren.Disclosure: Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.
