Senior Alert: The Top 5 Medicare Mistakes That Cost You Big

When you turn 65, it’s not just a milestone; it’s also a point of no return for your health insurance. And I’ve seen too many competent, responsible folks make Medicare mistakes that they could have avoided that cost them thousands of dollars over time.

You or someone you care about is probably about to make some significant decisions if you’re reading this. But here’s the sad truth: Medicare is meant to be hard to understand. It’s a minefield of enrollment periods, penalties, prescription programs, and dozens of policy possibilities. And the worst part? A lot of people don’t realize they’ve made a mistake until it’s too late.

In this article, I’ll show you the top five Medicare blunders that cost you real money, coverage, and peace of mind, as well as the hidden gaps that most articles don’t talk about. What I want to do? To help you make wise, sure decisions before the system gets you back.

Let’s get to the point and skip the tiny print.

Mistake #1: Missing Your Initial Enrollment Period (IEP)

Your Initial Enrollment Period (IEP) is your first chance to sign up for Medicare, and it only happens once. It starts three months before your 65th birthday, includes the month you were born, and ends three months after that. You have seven months to sign up for Medicare Parts A and B (and maybe Part D) or face fees and delays in coverage for the rest of your life.

Why This Mistake Will Cost You a Lot

• If you wait 12 months after you are eligible, you will have to pay 10% more for Part B premiums for the rest of your life.
• If you don’t get creditable drug insurance and you wait to get coverage, the Part D penalty is 1% of the national rate each month you wait.

If you miss your IEP, you’ll have to wait for General Enrollment (January 1 to March 31) and your coverage won’t start until July 1st. This will leave you with gaps and bills you didn’t expect.

Who’s Most Likely to Get Hurt?

• People who are still working at 65 and think they don’t need to sign up
• People who don’t know that COBRA, retiree insurance, or VA coverage doesn’t count as “creditable”
• Older people who assume Part A is enough but forget that they require Part B for outpatient treatment

For example:

Part B was put off by a client because their business plan concluded sooner than intended. He didn’t meet the requirements for a Special Enrollment Period (SEP), thus he has to pay an extra $52 a month for the rest of his life.

If you’re worried about affording premiums or late penalties, you might qualify for Medicare help for low-income seniors, which can reduce or eliminate many out-of-pocket expenses.

Mistake #2: Skipping or Delaying Part D Prescription Drug Coverage

You might be wondering, “Why should I sign up for a drug plan if I don’t take any medications right now?”
That way of thinking might cost you a lot of money over time.

Medicare Part D helps pay for prescription drugs, but if you wait to sign up and don’t have any other good drug coverage, you’ll have to pay a penalty for the rest of your life, even if you don’t fill a prescription for years.

Why This Error Will Cost You a Lot:

• Penalty math: For every month you don’t have Part D or creditable coverage, you’ll have to pay 1% of the national base rate. For example, if you wait 20 months, you’ll have to pay an extra 20% on your premium every month for the rest of your life.

• Confusion about creditable coverage: VA, job, or retiree plans might not qualify, and most seniors don’t check this.
• Late enrollment means being at risk: If you don’t have health insurance and something bad happens, even a short break in drug coverage might cost you a lot.

Example of a Real Cost:

Without insurance, cancer drugs like Revlimid, Ibrance, or Gleevec can cost more than $10,000 a month. A small investment in a medication plan today can help keep your health and finances safe in the future.

Who is Most Likely to Be Affected?

• Seniors who are healthy and say, “I’ll sign up later”
• Retirees whose employer plans stop without warning
• Veterans who only get VA benefits (which don’t usually qualify)

Mistake #3: Not Reviewing Your Medicare Plan Every Year

You think you’re done after enrolling once? That’s not true. Every year, Medicare plans change, and so do your health needs. What worked for you last year can now cost you hundreds of dollars extra or cover fewer doctors or drugs.

Why This Mistake Will Cost You:

• Changes to drug formularies: Your medicine could go from Tier 2 to Tier 4, which would double your copay.
• Networks change: Your plan’s network could not include your doctor or pharmacy anymore.
• Premiums and deductibles go up without anyone noticing: You won’t see it unless you look.

In the Real World:

Margaret from Arizona didn’t look over her Part D strategy. She had to spend $1,200 more out of pocket for the same prescription the next year since her insulin shifted to a higher category.

Reminder: The Open Enrollment Window is now open.

This is the only time you can switch Advantage or Part D plans, unless you meet the requirements for a SEP.

Mistake #4: Choosing a Medicare Plan Based on Friends—or Just the Monthly Premium

Your neighbor is happy with their strategy. Your cousin states that their Advantage plan with no premium is “the best thing ever.” But here’s the truth: Medicare isn’t the same for everyone, and what works for them might not work for you.

This Mistake Hurts Because

• Premium does not equal total cost. Many Advantage plans with no premium have higher copays, smaller networks, and large out-of-pocket limitations.
• Drug coverage is different for each plan. Your drugs may not be covered or may not be inexpensive.
• Doctor networks are different for each plan: You might not be able to see your favorite provider or specialist anymore.

According to KFF, just approximately 11% of beneficiaries switched plans in 2023. Many of them stayed with policies that didn’t cover them well because of peer pressure or lack of action.

Example That Hits Home:

A retiree chose the same Advantage plan as his golfing buddy, but then he found out that his cardiologist wasn’t in the network and he had to pay $400 out of pocket for each visit.

A quick list to help you pick the right plan for you:

• Are your doctors in your network?
• Are the meds you take on the plan’s formulary?
• What are the most you can afford to pay out of pocket?
• Do you travel a lot or live in another state part-time?

For example, if you have a chronic condition like heart disease, the wrong plan might not fully cover your ongoing treatments, resulting in surprise bills and limited care options.

Mistake #5: Ignoring Medigap Timelines and Special Enrollment Rules

A lot of people don’t acquire Medigap (Medicare Supplement Insurance) when they turn 65 because they assume, “I’ll get it later if I need it.” But that wait could mean that you’ll never be able to qualify again, at least not without paying extra or getting turned down.

Why This Mistake Is So Bad:

• When you turn 65 and sign up for Part B, you have a one-time, 6-month Medigap Open Enrollment Period (OEP).
• You can’t be turned down or charged more because of a previous condition during this time.

What comes next? Underwriting is in place, and your health history can cause you to be turned down or charged higher premiums.

Confusion over the Special Enrollment Period (SEP):

• Many retirees don’t understand the regulations for SEP, especially when they leave their employer’s insurance.
• If you miss a SEP window, you can have to pay Part B or Part D penalties or go without coverage.

Important: When COBRA, TRICARE, or VA benefits cease, they don’t necessarily start a SEP.

The Real Story:

A retired firefighter, 67 years old, put off Medigap. Two years later, following a stroke, he was turned down for extra coverage because of his medical history. Now, he has to pay 20% of the cost of every hospital and doctor visit.

Who’s Most Likely to Get Hurt:

• Retirees who are quitting their employer’s insurance and don’t know when SEP is
• People who don’t acquire Medigap right away when they can
• Anyone who thinks they can “add it later” without any problems

Hidden Costs Most Seniors Overlook (Even After Enrolling)

A lot of older people think that signing up for Medicare means that everything is now “covered.” Sadly, that’s not the case at all. Most plans don’t talk about the hidden, recurrent, and unexpected fees that can quickly eat into your resources.

What Extra Costs to Be Aware Of:

• 20% coinsurance on Part B treatments, with no limit unless you have Medigap.
• Original Medicare doesn’t always cover dental, vision, and hearing care.
• Part D covers high-priced specialty medications (some cancer drugs cost more than $1,000 a month).

A lot of individuals think that Medicare means full coverage. No, it doesn’t. That shortfall can cost you $5,000 to $10,000 a year out of your own wallet.

Warning to Readers:

Don’t let treatments that aren’t covered by insurance, like dental implants, hearing aids, or glasses, ruin your finances. Think about getting a Medicare Advantage plan that covers them, or get supplemental coverage early.

Seniors who qualify for both Medicare and Medicaid benefits may be eligible for additional programs that fill coverage gaps—like dental or vision—and drastically reduce prescription and hospital expenses.

Final Steps – What You Should Do Today

Let’s make this a checklist instead of becoming overwhelmed. No matter how old you are, 64 or 70+, here’s what to do now:

Medicare Action Plan That Can’t Go Wrong:

If you’re going to be 65 soon:

• Mark your IEP dates
• Pick Part D even if you’re healthy.
• Think about Medigap for the six months you have it.

If you are already on Medicare:

• Set a reminder for October 15 to look over your strategy.
• Every year, check your medications and doctors against each other.
• Be careful of offers or promotions that seem too good to be true.

If you think you did something wrong:

• Call the Medicare Rights Center or SHIP.
• You might be able to get an appeal, a SEP, or a lower penalty.

Planning ahead, even just one phone call or comparison tool, can save you hundreds of dollars a year and keep you from getting fines for life.

Bonus Mistake: Ignoring Scams, Misinformation & “Free Help” That Isn’t Free

Medicare fraud is rising—and scammers are getting better. From fake plan phone calls to “audit letters” demanding payment, seniors are being targeted during open enrollment and even year-round.

Why It’s a Growing Threat:

• Over $14.9 billion was saved in Medicare fraud prevention in 2023 – KFF: Medicare Program Integrity
• Scammers use spoofed CMS numbers, phishing emails, and even fake field agents
• Misleading TV ads and mailers often push you toward high-commission plans, not the best-fit ones

Even “free Medicare advisors” may not disclose they’re tied to commission-based insurance sales

Signs You’re Being Targeted:

• A caller says “Medicare is auditing your coverage” or asks for your Medicare ID number
• You receive a free brace or genetic test offer in the mail
• An “advisor” won’t show you multiple plan options side by side

Still Confused About Your Medicare Choices?

You’re not alone—and you don’t have to navigate this alone either.

At FameTribute.com, we simplify Medicare for real people like you. Whether you’re turning 65 or already enrolled and unsure if you’re on the right plan, we can help you avoid costly mistakes and find the coverage that actually fits your needs.

Get Your Free Medicare Plan Review Today

• Personalized guidance
• No spam. No sales pressure. Just clarity.
• 100% secure and confidential

Visit FameTribute.com to get started

Disclaimer: The information on FameTribute.com is for educational purposes only and does not constitute official Medicare advice. Please consult Medicare.gov or a licensed advisor before making coverage decisions. FameTribute.com is not affiliated with any government agency.