5 Major Mistakes to Avoid During Medicare Open Enrollment

Source Motley_fool

Key Points

  • Medicare's open enrollment period is underway through Dec. 7.

  • It's important to review your plan choices in case there's a better fit.

  • Part of that means understanding how your current plan and health needs are changing.

  • The $23,760 Social Security bonus most retirees completely overlook ›

Many retirees like to spend the fall months admiring changing leaves, baking cozy things, and getting out before the weather freezes over. But there's an important task you should tackle this fall if you're a retiree on Medicare -- open enrollment.

Each fall, Medicare enrollees have an opportunity to make changes to their coverage. That could mean switching from one Part D drug plan to another, choosing a different Medicare Advantage plan, or dropping Medicare Advantage entirely and switching to original Medicare.

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Thoughtful man reviewing paperwork at a table in a bright living room

Image source: Getty Images.

But it's important to take full advantage of that opportunity. And part of that means avoiding these big mistakes.

1. Not reviewing your current plan's annual notice of change

Whether you're enrolled in a Medicare Advantage plan or a Medicare Part D drug plan, by now, you should have received an annual notice of change. That notice should review the ways your plan is changing in 2027. That could mean higher premiums, different drug copays, or a new set of benefits. And it's worth noting that not all plan changes are automatically bad.

It's important to read that notice of change thoroughly before exploring different plan choices. If you didn't receive that notice or may have thrown it out by accident, contact your plan administrator for a copy.

2. Choosing a new plan based on premium costs alone

It's natural to want a Medicare Advantage or Part D plan that has a low premium. Some plans even have $0 premiums. But basing your decision on premium costs only is a mistake.

A $0 premium Medicare plan doesn't mean you won't face other out-of-pocket costs. You'll still be looking at copays, deductibles, and other out-of-pocket expenses. So before you choose a new plan, try to calculate your total estimated cost so you know what you're dealing with.

3. Not asking your providers about anticipated changes to your care

It's not just your current Medicare plan that may be changing in 2027. Your health needs may be changing, too.

Now's the time to talk to your doctors about anticipated changes, whether it's a switch to a new daily pill or different recommended therapies for a chronic condition you've been managing. The specifics of your care could influence how much it costs and which Medicare Advantage or Part D is the best fit.

4. Overlooking provider network changes

If you're on Medicare Advantage, you may be aware that going outside your plan's network could mean facing exorbitant costs. That's why it's important to pay attention to network changes.

Medicare Advantage plans commonly drop and add providers from year to year. If sticking with the doctors you know and trust is a priority for you, make sure to verify that they'll be in-network in 2027 if you intend to keep your current plan. And if you're looking to make a switch because there's an aspect of your plan you don't like, verify their participation in another plan before moving forward.

5. Waiting until the last minute to start reviewing your choices

Medicare's fall open enrollment period runs through Dec. 7. But that doesn't mean you should wait until after Thanksgiving to start reviewing your plan choices.

There are various factors to consider when evaluating Medicare plans, and the process can be more time-consuming than expected. Give yourself a good number of weeks to choose your 2027 coverage so you don't end up regretting it.

Spending time reviewing Medicare plans may not seem like an optimal fall activity. But it's an important thing to do. Just make sure to steer clear of these mistakes so you can choose Medicare coverage for the new year that best meets your needs and doesn't strain your budget too heavily.

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