10 Medicare Mistakes to Avoid

Medicare, the government's affordable health insurance plan, can be a boon for you when you turn 65 – as long as you are savvy enough to sidestep some all-too-common blunders. Here, to help you navigate the enrollment process and make wise choices, is our top ten list of what not to do:

Don't Miss Your Original Enrollment Period You're eligible to enroll starting three months prior to your 65th birthday and you have until three months after your birthday to complete the process. This is true even if you decide to wait to retire until your full retirement age or at age 70. If you let that six-month window slip by, you will have to wait a whole year before you get another chance to sign up. Not only that, but in most cases you'll have to pay a penalty for being late. The exception is if you choose to wait to get Part B because you are still covered by insurance from your employer or your spouse's employer. If that insurance is better than what Part B has to offer, you can postpone enrolling in Part B and you'll be offered a Special Enrollment Period later on with no penalty.

If You Drop Your Employer's Plan, You May Not Be Able to Go Back to It Each employer has different rules but be aware that if you opt out of your employer's insurance coverage and enroll in a Medicare Advantage Plan instead, you may be restricted from going back to the employer's plan. That may not matter to you, but be sure to crunch all the numbers and make the choice that is best for your bottom line. Of course if you're self-employed and you've been paying your own fairly high premiums, you're going to be better off with the lower premiums offered by Medicare.

If representatives are going door-to-door or making unsolicited cold calls, you can be sure they are not government sponsored. Never give your personal information to anyone who approaches you with a sales pitch.

Procrastination can cause you to do hasty research or rely on the advice of friends who may have different needs and resources than you do. Take the time to become an informed consumer. That's how you'll get the best deal and the best protection without making costly mistakes

Don't Wait to Be Notified That It's Time to Enroll If you started taking your Social Security or Railroad Employee benefits at age 62, you'll automatically be enrolled in Medicare at 65 and your card will arrive in the mail. In every other case, you have to be proactive. You won't receive an official notice and you won't get any instructions.

Don't Give Up on the Possibility of Medicare Just Because You Haven't Worked Long Enough to Qualify You have options including qualifying on your current or former spouse's record of work or simply buying into the program.

Don't Assume That Because You're in Poor Health, You Won't Qualify Your age is your qualification. You will receive full benefits regardless of the state of your health so don't put off applying for coverage. Also, you will not be charged higher premiums because of existing or pre-existing conditions.

Don't Get the Idea That Medicare Is Free It's surprisingly affordable, but you do pay premiums and co-pays so plan your retirement savings and budget accordingly. Typically, your monthly premium is deducted from your Social Security payment and you are billed for your co-pays.

Don't Assume You Can Rely On Medicare to Cover All Your Insurance Needs The program does encompass a great many services, but not all. You may need to purchase extra coverage from insurers who are approved by the government.

Don't Count On Medicare Being a Family Plan Nobody is covered until age 65 and each person must enroll as an individual. You cannot get a family plan to cover your dependents.