5 Mistakes New Retirees Need To Avoid When Making Arrangements For Medicare

Those who are currently in the process of retiring or who have recently retired need to make sure that they handle their Medicare arrangements properly.

Most likely, one of the most significant expenses you're going to have to deal with in your retired life will be health care expenses. By properly making arrangements for Medicare coverage, you can be sure that you will get the medical treatment you need in retirement without wiping out your savings. The following are five mistakes you need to avoid as a new retiree to ensure that you get adequate Medicare coverage for your healthcare needs.

1. Not scheduling procedures depending on Medicare coverage comparisons

Before you retire, you should think about any medical procedures you need to have performed and the coverage your employer offers vs. what you'll get with Medicare. The primary concern you're going to want to look at when you're scheduling procedures while making retirement plans is what you're going to have to pay out-of-pocket.

Medicare might offer better coverage for procedures requiring hospitalization while a commercial or employer sponsored plan might offer better coverage for procedures that don't require as much hospitalization.

Make sure you don't lose your employer health insurance plan before you've taken full advantage of it to get any necessary procedures performed for which Medicare doesn't offer as much coverage.

2. Waiting to sign up for Medicare too long

It's important to sign up for Medicare coverage as soon as you are eligible because you may be charged late penalties for signing up after the initial enrollment period for which you are eligible. 

3. Neglecting to sign up because you have coverage from the VA

Medicare might offer you better coverage than the VA offers. Once you are eligible for Medicare, you should take advantage of it because the VA's health insurance plan might not offer you important coverage that you're going to need down the road. 

4. Thinking you can cover others in your family with your Medicare plan

Unfortunately, Medicare is only going to offer coverage of you and not for other people in your family like a spouse.

If you are married, you and your spouse might want to choose Medicare coverage plans because you both have different healthcare and prescription drug needs depending on what conditions you're suffering from or at risk for. 

5. Assuming that Medicare will put a cap on your coverage

One big advantage that Medicare typically offers over employer health insurance is that there are not usually caps on the total amount Medicare will cover annually.

If you are expecting to have some hefty medical bills, Medicare should offer coverage without a cap. Medicare coverage is especially comprehensive if you opt for a plan including Medigap or a Medicare Advantage plan option.