5 Medicare Myths That Are Costing Seniors Thousands Every Year

It's sometimes better to know nothing about a specific topic than to believe a myth. Believing that you know the truth makes it easy to move through life without further investigation on the subject -- and it's probably something we've all been guilty of.

The danger of holding onto myths is how much they can cost. For example, seniors who fall for any of these five myths about Medicare can spend far more on healthcare in retirement than they planned for.

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Myth 1: Enrollment is automatic

It sometimes feels as though the federal government knows everything there is to know about us, including the moment we were born. However, that doesn't mean it automatically enrolls you in Medicare at age 65. Only those who already receive Social Security are automatically enrolled. Everyone else must sign up during the initial enrollment period (the three months before to the three months after you turn 65).

Myth 2: Anyone with access to employer coverage can stick with it, rather than sign up for Medicare

The reality is that some people can delay signing up for Medicare if they're covered by an employer-sponsored health plan. However, if you're one of the millions who work for a company with fewer than 20 employees, you aren't typically eligible to delay Medicare.

Here's why that matters: Failure to sign up for Medicare can lead to a 10% penalty for every year you delay.

Myth 3: Medicare is free for retirees

The majority of Medicare recipients pay between $202.90 and $689.90 per month for Part B coverage -- the portion that covers outpatient care, medically necessary services, and preventative services. It's a smart financial expense to plan for.

Myth 4: Medicare covers all medical costs, including long-term care

This myth may end up being one of the most expensive a retiree can have, and the one most likely to drain their savings account. In reality, Original Medicare (Parts A and B) has deductibles, copays, and coinsurance. It doesn't cover vision, dental, hearing, or long-term care.

Myth 5: Once you've chosen a Medicare plan, it stays the same every year

You're not stuck with a Medicare plan forever. Not only do you have the right to change plans annually, but you owe it to yourself to review what's available each year. There are always moving parts when it comes to Medicare, and you never know when a better plan will come along that can save you money.

A vital part of retirement planning is ensuring that what you believe to be true about Medicare is accurate. That way, you can make healthcare decisions that make sense for you.

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