One of the scariest things about Medicare is the amount of bad information that is out there. Insurance agents don’t typically give you the whole story, and when you call Social Security, you can’t be confident they’re giving you the correct information.
Far too often, I come across clients who were given wrong information, and it’s typically surrounding the ability to switch Medicare plans in the future.
Here is the thing, if you don’t know the rules for switching plans, you can make HUGE mistakes that jeopardize your health care and could cost you your retirement savings.
In the last couple of months, Medicare’s Open Enrollment has been underway, and there have been commercial after commercial and insurance advertisements all over the place. This is when I usually see “zero premium” Medicare Advantage plans advertised the most.
It’s these plans I want you to be cautious of because of how Medicare rules work.
First, there are two ways to get your Medicare coverage. The first and most popular option is Original Medicare, where you have Medicare Part A and Medicare Part B, a Medigap policy (also called a supplement plan), and finally a Medicare Part D drug plan. The other way to get your Medicare coverage is the Medicare Advantage. This rolls all of the parts of Medicare into one plan typically.
Everyone that is fully on Medicare has Parts A and B. However, those on Original Medicare looking to buy a Medigap plan can only join these plans within the first six months of their Medicare Part B start date. To join a Medigap plan after that six-month window, you have to be VERY healthy. (This also depends on what state you live in as some different rules apply from state to state).
On the other hand, you have Medicare Advantage plans, and anyone can get a Medicare Advantage plan no matter what their health history is.
Now, here is why this is important.
Most people assume that you can switch Medicare plans at any time because they hear about Medicare’s Annual Open Enrollment. However, that is not true since the Open Enrollment only applies to certain parts of Medicare.
Due to insurability rules with Medigap plans, you want to pick a plan assuming you won’t always be healthy. You want to look at your Medicare plan as the plan you’ll have for the rest of your life. After your six-month window, switching from Medicare Advantage to Original Medicare is nearly impossible.
The “zero premium” Medicare Advantage plan commercials that you’re seeing are very misleading. They can be a real mess down the road if it’s not what is best for you now and for you in the future.
With that said, Advantage plans can work for certain people in certain situations. But keep in mind that you may not have the ability to switch out of that plan in the future.
To get help with your Medicare decision, you can register for my next free online Medicare workshop by going here: https://join.themedicarecoach.com/free-workshop
