Back in April, I introduced two Medicare mistakes that you should be sure to avoid. As I explained, there are some pitfalls and traps that can cost plenty. Below are mistakes 3 and 4.
3. Failing to enroll in Part B when you should:
Signing up at the time that’s right for you is critical. If you don’t, you risk late penalties in the form of surcharges added to your monthly Part B premiums for ALL future years. The other down side is that if you don’t enroll when you are eligible, you could have delays for several months before your coverage kicks in. There is a lot of confusion about when to enroll and if there are any exceptions. Here’s the scoop; if you have health coverage beyond age 65 from an employer for which you (or your spouse) actively work, you can delay Part B enrollment without penalty until the job ends. Otherwise, you need to sign up during the initial seven-month enrollment period – which includes the month you turn 65, three months before and three months after.
4. Failing to read your Annual Notice:
The Annual Notice of Change (ANOC) is an important document sent in the mail each September by your Medicare Advantage (HMO or PPO) plan or your Part D prescription drug plan. It specifies what changes in costs and coverage the plan will make for the following year. You can then compare it with other plans during the open enrollment (October 15th to December 7th) and switch if you want. Failing to read the notice can result in nasty shocks at the beginning of the year. Be aware, your plan might increase the premiums or change their drug formulary. Heads up in September: read the ANOC!
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