Retirement is an exciting time, but it can also be a time of great uncertainty, especially when it comes to health care. Medicare is the federal government’s health insurance program for people over the age of 65, people with disabilities, and people with end-stage renal disease.
However, there are some common mistakes that people can make when enrolling in Medicare or using it. Let’s take a closer look at three Medicare mistakes to avoid in 2024. Let’s take a look at it and learn your tricks. But, before moving forward, make you’re you’re eligible for Medicare. You may not be eligible if you are still working and have health insurance through your employer.
Don’t Miss Your Medicare Initial Enrollment Period
The Medicare Initial Enrollment Period (IEP) begins three months before the month of your 65th birthday and ends three months after that month. If you don’t enroll during this period, you will have to pay a late enrollment penalty every month for the rest of your life.
The late enrollment penalty is 10% of the monthly cost of Medicare Part B for every month you delay enrolling. For example, if you delay enrollment for one year, you will pay a monthly penalty of $27.50 for the rest of your life.
So, if you’re not up to lose some cash, and you want to score the best Medicare plan at the best price possible, well, then be aware of the IEP times and do it right.
Understand Your Healthcare Costs and Options
There are four main parts of Medicare: Part A, Part B, Part C, and Part D. Each part covers different services and has different costs.
Part A covers hospitalization, skilled nursing care, and hospice care. It is free for most people, but you may have to pay a monthly premium if you have high income. Part B covers medical and preventive services, such as doctor’s visits, tests, and prescription drugs. It has a monthly premium and an annual deductible.
Part C is also known as Medicare Advantage. It is a private health insurance plan that provides Medicare coverage. Medicare Advantage plans may have lower monthly premiums than Part B, but they may also have restrictions on the services they cover. Finally, Part D covers prescription drugs. It has a monthly premium and an annual deductible.
Always Compare Two or More Medicare Plans: Premiums and Deductibles for 2024
There are many different Medicare plans available, so it is important to compare them before you decide on one. You can compare plans on the CMS website or using a Medicare plan comparison tool.
When comparing plans, you should consider factors as the monthly premiums, the annual deductibles, the services covered, what services or healthcare professionals are restricted and how big is the provider’s network.
On October 12, 2023, the Centers for Medicare & Medicaid Services (CMS) disclosed the 2024 figures for premiums, deductibles, and coinsurance in Medicare Part A and Part B, along with the income-related monthly adjustment amounts for Medicare Part D. The Medicare Savings Programs (MSPs), aiding over 10 million individuals with Medicare premium coverage, have undergone enhancements.
The Department of Health and Human Services (HHS), through CMS, recently implemented a rule simplifying MSP enrollment, benefiting around 860,000 people. Additionally, the Part D low-income subsidy (LIS) assists with Part D premiums and reduces prescription drug costs, now extended to more eligible individuals by the Inflation Reduction Act.
In the annual assessment of Medicare Part B costs, guided by the Social Security Act, the standard monthly premium for Medicare Part B will be $174.70 in 2024, marking a $9.80 increase from 2023’s $164.90. Furthermore, the annual deductible for all Medicare Part B beneficiaries will be $240 in 2024, up by $14 compared to the $226 deductible in 2023. These adjustments align with the government’s commitment to enhancing healthcare access and affordability for millions of Americans.