Listen and subscribe to Decoding Retirement on Apple Podcasts, Spotify, or wherever you find your favorite podcasts.
What you don’t know about Medicare could cost you a fortune, says Melinda Caughill, the co-founder of 65 Incorporated.
In a recent interview for the Decoding Retirement podcast at the 2024 Schwab Impact event (see video above or listen below), Caughill outlined some “dirty little secrets” about Medicare that every current and future beneficiary should know, from the importance of double-checking information from Social Security agents to reviewing your coverage each year.
This embedded content is not available in your region.
Here are some of the potential pitfalls in the Medicare system Caughill highlighted.
Caughill explained Medicare enrollment as a six-step process that goes beyond merely selecting specific insurance providers like UnitedHealth (UNH), Humana (HUM), or Aetna.
The initial step is to decide the timing of enrollment, which is dependent on individual needs, such as whether to enroll at age 65 or delay enrollment.
The next step is to choose the type of Medicare coverage that best suits one’s needs. This is often referred to as selecting a “path,” since it can be a one-way decision with no turning back.
Read more: Medicare open enrollment: How to add or adjust your coverage
After determining the timing and path, individuals should select specific insurance plans. Enrollment in Medicare is then completed through the Social Security Administration, followed by enrolling in any additional coverage.
However, the process does not end there. The final step involves reviewing and potentially adjusting one’s coverage annually to ensure it continues to meet personal needs and circumstances.
“The sixth step of Medicare enrollment is reviewing your coverage each and every year for the rest of your life,” Caughill said. “No autopilot.”
Failing to review coverage means you’re essentially giving insurance companies a blank check. And “just because you haven’t experienced any changes to your health or medications” doesn’t mean your health plan will remain the same year after year, Caughill said.
Premiums, deductibles, out-of-pocket copays, provider networks, and more can change each year, all while keeping the same plan name, she said.
When you contact the Social Security Administration (SSA) to enroll in Medicare, you may not only find it difficult to get helpful advice, but you also risk receiving incorrect information.
