Every year, many Medicare beneficiaries make simple mistakes that end up costing them dearly. These aren’t rare missteps—they’re common, easy to overlook, and often discovered only after the bills arrive. Here are five of the costliest traps and how to avoid them.

Mistake #1: Delaying Enrollment

When you first become eligible (usually at 65) you have a 7-month Initial Enrollment Period: the month of your birthday plus the 3 months before and after. Miss it without other qualifying coverage and you’ll face a lifetime penalty of 10% extra for every year you delay Part B.
Case Example: Linda waited a year to save money. Her premiums are now 20% higher for life, costing more than $600 annually.
Tip: Mark your enrollment dates and confirm whether you can delay without penalty.

Mistake #2: Confusing Medicare Advantage with Medigap (Supplement)

Medicare Advantage (Part C) is an alternative to Original Medicare and often includes drug coverage. Medigap, by contrast, supplements Original Medicare to reduce out-of-pocket costs. Choosing the wrong one can create gaps in coverage.
Case Example: George picked Advantage for the lower premium but didn’t realize his plan’s network didn’t extend outside his state. A hospital visit in Florida left him with a hefty bill.
Tip: Compare plans carefully. Frequent travelers or those with many specialists may prefer Medigap, while Advantage can fit those seeking lower premiums and extra benefits.

Mistake #3: Not Checking Provider Networks and Drug Lists

Advantage and Part D plans rely on provider networks and drug formularies. Ignoring them can mean losing your doctor or paying far more for prescriptions.
Case Example: Maria switched to a cheaper drug plan but didn’t check the formulary. Her prescription jumped from $45 to $280 per month.
Tip: Each year, call your agent or use your plan’s “Drug Look Up” tool to review all medications and providers.

Mistake #4: Ignoring the Annual Notice of Change (ANOC)

Every fall, plans send details about next year’s changes. Skipping it could mean surprise copays, lost benefits, or dropped doctors.
Case Example: Tom ignored his ANOC and later learned his specialist was dropped mid-treatment, forcing him to switch or pay out-of-network.
Tip: Always review your ANOC and compare plans during Open Enrollment (Oct 15–Dec 7).

Mistake #5: Assuming You Can Switch Anytime

Outside your Initial Enrollment (or a qualifying life event like moving or losing coverage) you can only change plans during the Annual Enrollment Period (Oct 15–Dec 7).
Case Example: Ellen tried to switch plans in March after discovering her hospital wasn’t covered. With no qualifying event, she had to wait until October, paying higher costs in the meantime.
Tip: Know your enrollment periods so you’re not stuck in the wrong plan.

 

Amie Anderson is a seasoned business leader with more than 15 years of experience in sales and exceptional customer service. Drawing on her success in real estate, travel, retail, and operations management, she has built her career on cultivating trust, understanding clients’ needs, and delivering customized solutions. You can reach Amie and her team at 704.875.3060 or visit www.foglegroup.com.