Have you ever heard of “Occam’s Razor”?
It’s a principle that suggests when you have multiple explanations for something, the simplest one is usually the best.
For example, if you hear hoofbeats, think of horses, not zebras.
I like to take the same approach with Medicare. Why make things complicated when they can be simple??
Here are 5 SIMPLE ways you can save money on Medicare:
DON’T DIY YOUR MEDICARE!
Why would you try to figure out the complex world of Medicare when there are trained professionals who will do it for you for free? You’ll save time AND money by talking to an independent agent.
Focus on Coverage, Not Perks
When it comes time to enroll in Medicare, your inbox will be FLOODED with colorful brochures from insurance companies advertising their niftiest plans with all the bells and whistles. Trouble is, when you’ve been in the hospital for 90 days, will the policy help you then? A gym membership is cool, but saving THOUSANDS on medical bills is life-changing.
Get a Part D Plan, Even if You Don’t Take Any Meds
I know, I know, this feels counterintuitive. But hear me out. If you DON’T sign up for a Part D plan when you enroll in Medicare, you will be penalized for how many months you could have been enrolled and weren’t. And sadly, this penalty never goes away. So do yourself a favor and sign up for that Part D plan. Some plans are as low as $8 a month.
Cover Your Out-of-Pocket
In the insurance world, do you know how you get bit in the butt? Your out-of-pocket exposure. What does this include? Co-pays to see specialists, MRI’s and CAT scans, co-insurances, and travel emergencies (to name a few!). You will save BIG time if you prepare for these eventualities from the get-go.
Enroll ON TIME
A huge way people blow through money with Medicare is not enrolling on time. I get it. Enrollment periods are confusing. The simplest explanation is this: if you are planning on retiring at 65, your enrollment period begins three months before your sixty-fifth birthday, includes your birthday month, and the three months after you turn 65. This is called your IEP (Initial Enrollment Period). Don’t miss this window. If you do, you will also (surprise) be penalized. And that penalty doesn’t go away either.