Find the Right Medicare Plan for Your Needs
Choosing a Medicare plan is one of the most important decisions you'll make as you approach retirement or become eligible due to disability. With various plan types and coverage options, it’s easy to feel overwhelmed. Unfortunately, many people make mistakes during the selection process that can cost them time, money and peace of mind.
To help you make an informed decision let's review seven common mistakes to avoid when choosing a Medicare plan—along with tips on what to look for instead.
Mistake #1: Not Reviewing All Your Options
Many people stick with Original Medicare (Part A and Part B) because it’s familiar or seems like the simplest option. Others might automatically enroll in a Medicare Advantage Plan (Part C) without understanding how it works. Each option has pros and cons, and the best choice depends on your individual needs.
Take the time to compare Original Medicare, Medicare Advantage Plans and Medigap (Medicare Supplement Insurance). Consider your health needs, travel habits, preferred doctors and prescription drugs before deciding.
Mistake #2: Ignoring Prescription Drug Coverage
Even if you don’t take medications now, you could face a penalty later if you skip enrolling in Part D (Prescription Drug Coverage) when you're first eligible. Plus, drug costs can add up quickly without the right coverage.
Look into Medicare Part D plans or Medicare Advantage Plans that include drug coverage. Use Medicare’s Plan Finder tool to compare costs and coverage for the medications you currently take.
Mistake #3: Assuming All Plans Cover the Same Doctors and Hospitals
Not all plans have the same provider networks. With some Medicare Advantage Plans, you must use in-network doctors and hospitals or pay higher out-of-pocket costs.
Before choosing a plan, check that your preferred doctors and hospitals are in-network. If staying with a specific provider is important to you, this step is crucial.
Mistake #4: Focusing Only on the Monthly Premium
A plan with a low monthly premium might seem attractive, but it could come with high deductibles, co-pays or out-of-pocket maximums. In the long run, these costs can add up.
Look at the total cost of the plan—including premiums, deductibles, co-pays and annual out-of-pocket limits. Think about how often you visit doctors or need prescriptions to estimate your annual expenses.
Mistake #5: Not Understanding Enrollment Periods
If you miss your initial enrollment period or forget about annual open enrollment, you could face penalties or be stuck in a plan that no longer works for you.
Know the key dates:
- Initial Enrollment Period (IEP). Begins three months before you turn 65 and ends three months after.
- Open Enrollment Period. October 15 to December 7 each year. This is when you can switch or join plans.
- Medicare Advantage Open Enrollment. January 1 to March 31 for changes within Medicare Advantage.
Mark your calendar and review your plan annually during open enrollment to ensure it still meets your needs.
Mistake #6: Overlooking Extra Benefits
Some Medicare Advantage Plans offer additional benefits like dental, vision, hearing and fitness programs. If these services are important to you, don’t ignore them.
When comparing plans, consider what’s included beyond basic coverage. Be sure to balance these extras against potential limits on doctors or higher out-of-pocket costs.
Mistake #7: Not Asking for Help
Medicare can be complicated, and it’s easy to miss important details. Relying solely on advertisements or friends’ recommendations can lead to a poor fit.
Use trusted resources like the official Medicare website, or speak with a licensed Medicare counselor through your State Health Insurance Assistance Program (SHIP). They offer free, unbiased help.
Final Tips for Making the Right Choice
- Do your homework. Don’t rush the decision. Research and compare your options carefully.
- Keep your needs in mind. What works for one person might not be right for you. Focus on your health, budget and lifestyle.
- Review your plan every year. Health needs and plan offerings change, so check during open enrollment to see if you need to make adjustments.
If you follow these tips, you'll recognize common mistakes to avoid when choosing a Medicare plan.
Keep reading to learn about some of the key changes to Medicare in 2025.