Millions of older Americans rely on Medicare for their health coverage, but navigating the system can be tricky. Whether you're newly enrolling or have been a beneficiary for years, understanding how to maximize your benefits is crucial. Here are some common mistakes to avoid:

Signing Up Late
Missing your Medicare enrollment window can have long-term financial repercussions. Your initial enrollment period lasts seven months, beginning three months before your 65th birthday and ending three months after. Enrolling late could result in a lifelong surcharge for Medicare Part B—specifically, a 10% penalty for each 12-month period you delay. If you’re covered by a qualifying group health plan of 20 or more employees, you can delay enrollment without penalties, but smaller employer plans may not offer this option.

Overlooking Medicare Advantage Drawbacks
Medicare Advantage plans offer additional benefits, but they often come with limitations, such as restricted provider networks. This can make accessing necessary care challenging. In contrast, original Medicare (Parts A and B) allows you to see any doctor that accepts Medicare, giving you greater flexibility, especially if you travel.

Neglecting Open Enrollment Reviews
Every year, from October 15 to December 7, Medicare beneficiaries can review and change their coverage. Even if you’re satisfied with your current plan, it’s wise to explore options during this period. There may be more affordable or better-suited plans available that could enhance your healthcare experience.

Educating yourself on Medicare and avoiding these common pitfalls can help you make the most of your benefits and keep healthcare costs manageable during retirement. Stay informed and proactive by talking to an XML advisor about the resources that XML can offer you to help ensure your coverage meets your needs!

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