With health care on the horizon as one of your biggest expenses, it’s important to be aware of some of the common financial potholes that people face as they make important Medicare decisions. If you’re not careful, selecting the wrong plan can cost you thousands of dollars every year. But rest assured—our experts have gathered the biggest financial pitfalls people experience, so you can avoid them!
1. Buying the Same Plan as Your Spouse, Friend or Neighbor
New clients often come to us wanting more information about a specific health plan because they heard good things about it from their spouse, friend or neighbor. But our advisors always look at multiple options. Why? Because you are an individual, and your plan decision should be made based on your unique needs. The plan that is a great fit for your neighbor may not be right for you. By looking at a variety of options, we ensure our clients are making smart health plan choices to maximize their budget and avoid unnecessary expenses.
2. Buying More Coverage Than You Need
When it comes to health plans, you can find all levels of coverage for all different prices. But just like you wouldn’t buy a mansion for one person to live in, you should avoid buying more coverage than you need. As an example, Medicare supplements often look very appealing to new retirees because these plans offer a lot of coverage for a monthly premium that usually costs lot less money than their old employer plan. But did you know that supplements are susceptible to price increases each year? When you’re on a fixed income, that can hurt! For instance, you may find a supplement you like that costs $200 a month now, but in 10 years, you could be paying $1,000 a month! Try to buy the right amount of coverage for your individual needs.
3. Buying the Lowest-Cost Option
Just as you can purchase too much coverage, you can also purchase too little coverage. There are Medicare plans available that feature a $0 monthly premium, but these plans aren’t the right option for everyone. Again, you want to pay for the plan that offers the right amount of coverage for your needs, and sometimes that may mean paying a little extra. When it comes to your health insurance, that’s a smart choice.
4. Missing Out on Prescription Savings
Many retirees find that their biggest area of spending for retirement health care is on their prescription drugs. While you can’t necessarily change the cost of your prescriptions, you may be able to take advantage of discount programs with your insurance company and/or local pharmacy that will help you save money each month.
5. Paying Bills Even When You Think They Are Wrong
Here’s a scenario: you receive a medical bill in the mail that you think is wrong. However, you just pay it because you don’t want to go back and forth with the insurance company or the doctor’s office. If you’ve ever been in this situation, you are not alone. In fact, the majority of Medicare beneficiaries don’t file appeals. While you are never guaranteed approval, you may avoid overpaying by looking into bills that appear to be incorrect. Luckily, we help you with this at no cost.