Navigating Medicare can be overwhelming, especially when it comes to understanding the ins and outs of Medicare Supplement insurance. At Overton Agency we’re here to help guide you through the process, making sure you avoid costly mistakes along the way. Our team is dedicated to providing Medicare help to residents across Arkansas, ensuring you make informed decisions about your healthcare coverage.
As you get closer to signing up for Medicare health insurance, it’s important to understand the potential pitfalls of Medicare Supplement plans—also known as Medigap plans—and how you can avoid them. In this article, we’ll cover common Medicare mistakes to avoid, share tips for choosing the right Medicare plan, and show you how to maximize your Medicare benefits with the help of experts like us.
What You Need to Know About Medigap Plans
A Medicare Supplement plan, or Medigap plan, is designed to cover the gaps left by Original Medicare (Parts A and B). This can include things like Part A hospital coinsurance, Part B coinsurance, and deductibles. While these plans are helpful for covering out-of-pocket costs, it’s important to understand exactly what they do—and don’t—cover.
Medigap plans are not the same as Medicare Advantage plans. Unlike Medicare Advantage plans, which combine coverage for Parts A and B along with Part D prescription drug coverage, Medigap only works with Original Medicare. So, if you’re opting for a Medigap plan, you’ll also need to enroll in a Part D prescription drug plan for complete coverage.
Common Medicare Mistakes and How to Avoid Them
There are several common Medicare mistakes that people make when choosing their Medicare plan. By knowing what to look out for, you can avoid these errors and ensure you’re getting the coverage you need. Here are some of the most common mistakes:
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Missing the Enrollment Period
Missing your Medicare enrollment period is one of the most costly mistakes you can make. If you’re turning 65, you’ll enter your Initial Enrollment Period. During this time, you need to sign up for Medicare Part A and Medicare Part B. If you miss this window, you could face a penalty and experience delays in your coverage. -
Not Signing Up for a Part D Plan
If you’re enrolling in Medicare Supplement insurance but don’t sign up for a Part D prescription drug plan, you may face high costs for medications down the road. You’ll want to make sure that you enroll in a Part D drug plan to avoid high prescription costs. -
Skipping the Medigap Open Enrollment Window
If you plan to enroll in a Medigap plan, timing is crucial. The Medigap open enrollment window begins the first month you’re 65 and enrolled in Part B. During this period, you can purchase a Medigap plan without undergoing medical underwriting, meaning you won’t have to answer health questions or face higher premiums. Missing this window could result in higher costs or the inability to get coverage at all. -
Choosing the Wrong Medigap Plan
Not all Medigap plans are the same, and choosing the wrong one can leave you with less coverage than you need. For example, Plan F, the most comprehensive Medigap plan, is closed to new enrollees starting in 2025. Plan G is the next best option for many people, offering extensive coverage. It’s important to compare plan options to make sure you’re choosing the one that works best for your health and financial situation. -
Underestimating the Cost of Coverage
Not understanding the total costs of Medicare coverage is another mistake to avoid. While Medicare pays for many medical services, there are still gaps. Depending on your health and the type of Medicare plan you choose, you may still face out-of-pocket costs. Carefully consider the premiums, deductibles, and any additional costs before making a decision.
Understanding Your Options: Medicare Advantage vs. Medigap Plans
When it comes to Medicare options, one of the biggest decisions you’ll need to make is whether to choose a Medicare Advantage plan or a Medigap plan. Both options offer coverage, but they work differently.
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Medicare Advantage plans combine Part A, Part B, and often Part D prescription drug coverage into one plan. These plans are offered by private insurers and may have extra benefits like dental, vision, and wellness programs. However, Medicare Advantage plans have networks, which means you may be limited to certain doctors and hospitals.
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Medigap plans, on the other hand, work with Original Medicare and can help pay for the gaps left by Parts A and B. They don’t include Part D coverage, so you would need to sign up for a separate Part D prescription drug plan. Medigap plans generally offer more flexibility in terms of provider choice but may come with higher premiums.
The Importance of Medicare Advantage Open Enrollment
During the Medicare Advantage open enrollment period, which occurs each year from October 15 to December 7, you have the opportunity to switch from Original Medicare to a Medicare Advantage plan or make changes to your current Medicare Advantage plan. This is a good time to review your Medicare program and see if it’s still the best option for your needs.
During the annual enrollment period, you can also make changes to your Part D prescription drug plan, ensuring that you’re covered for the medications you need. This is especially important if your health needs have changed during the year, or if your current plan no longer meets your needs.
Special Enrollment Periods and Avoiding Costly Mistakes
Sometimes, life events like moving or losing employer-sponsored insurance can qualify you for a Special Enrollment Period. During this time, you can make changes to your Medicare plan outside of the annual enrollment period. It’s important to stay informed about these special enrollment periods and Medicare resources to ensure you don’t miss any opportunities to adjust your coverage.
If you choose to change plans, keep in mind that Medicare pays differently depending on the plan you select. Be sure to review your annual notice of change to understand how your coverage might be affected.
How Overton Agency Can Provide Medicare Help
W’re here to help you navigate Medicare, whether you’re choosing a Medigap plan or a Medicare Advantage plan. Our team of financial advisors can help you avoid common Medicare mistakes and make sure you’re selecting a plan that works for your unique health and financial situation.
If you’re getting ready to sign up for Medicare Part A and Part B, or if you need help comparing Medigap plans and Medicare Advantage plans, we’re here to support you every step of the way. We understand that Medicare enrollment can be complicated, but we’re dedicated to making the process as easy and straightforward as possible.
Don’t wait until it’s too late—come see us at Overton Agency, or call us at 501-881-2050 to get the Medicare help you need to make the best decision for your healthcare. Whether you’re enrolling for the first time or reevaluating your existing plan, we’re here to make sure you avoid costly mistakes and get the coverage you need to maximize your Medicare benefits.
Remember, choosing the right plan is about more than just coverage—it’s about peace of mind. Let us help you make the best choice for your future.
FAQS
FAQ 1 What are the most common Medicare mistakes to avoid?
One of the biggest Medicare mistakes to avoid is failing to sign up for Medicare on time, especially if you’re not on an employer plan. Other pitfalls include choosing a plan without reviewing drug coverage or forgetting about the annual open enrollment period when plans may change.
Can I switch to another Medigap plan at any time?
You can try to change to another Medigap plan, but outside your initial enrollment window, you may have to answer health questions and go through medical underwriting. You may only switch to equal or lesser coverage without underwriting in limited cases — like moving from Plan F to Plan N.
What’s the risk of not reviewing your Medicare plan every year?
Plans and benefits can shift. Part D drug plans, Medicare Advantage, and Medigap options often update networks or prices. If you don’t review your coverage during annual open enrollment, you may get stuck in a different plan that doesn’t fit your needs — or one where your plan pays less than expected.
Does Medicare cover everything I need?
No — while Medicare covers many essentials, there are gaps. That’s why many Medicare beneficiaries add Part D drug plans, like Medicare Advantage, or a Medigap policy. Choosing the wrong plan that works poorly with your medications or doctors is a pitfall to avoid.
Can I get coverage without answering health questions?
Yes — when you first sign up for Medicare or during certain guaranteed issue periods, you can enroll in a plan without completing a page of health questions. But if you delay or try to switch plans later, especially to another Medigap plan, underwriting may be required.
