Common Medicare Mistakes

Medicare helps eligible parties pay for healthcare. However, because it is an extensive program covering millions of people in the United States, it has many regulations that can often lead to penalties. Here are some common Medicare mistakes individuals make and how to avoid them.

Common Enrollment Mistakes That Trigger Penalties

One common mistake that many people make is not having a Part D plan that covers prescription drugs. Under the Original Medicare plan, only hospitalization and doctor services costs are part A and B, respectively. For people under this coverage, they either have to enroll separately for Part D to meet their prescription drug costs or upgrade to other plans such as Medicare Advantage Plan, which often includes Part D. However, people sometimes fail to do this, especially those who may not be on any regular medication and are seeking to lower their healthcare premiums. Medicare charges a penalty for such individuals, which is calculated into the Part D plan when they finally choose to enroll.

Another common mistake is late enrollment. Medicare has a strict time window when you can make your initial enrollment. This is usually three months before and after your 65th birthday. If you fail to enroll for Medicare during this period, you will be charged a late penalty fee, which can significantly increase the premiums that you have to pay when you do finally enroll.

Another thing to note is that Medicare charges a surcharge for individuals above a certain annual income threshold. In 2025, the income thresholds were $212,000 for joint applications and $106,000 for individual filings. These surcharges are added to Part B and Part D premiums, significantly increasing the cost of insurance.

Strategies for Avoiding Medicare Penalties

You can avoid these mistakes and save substantial money in several ways. The first step is being aware of these penalties right from the start. This is why individuals are often advised to work with health insurance experts to help them navigate these complexities. You can sign up for a low-cost Part D plan for the Part D penalty, especially if you do not need regular medication but must keep your premiums low. At Jason Rubin Insurance Services, we can help you find the perfect plan to meet this need and help you avoid any penalties.

For late enrollment penalties, the solution is much more straightforward and involves ensuring you make the initial enrollment within the specified timelines. It also means updating your annual plan on the specified dates Medicare gives. You can use several approaches to help you with the high-income surcharge. The first is to file an appeal with Medicare, especially if your high income is due to a temporary windfall (such as the sale of a property) or if you calculate that your income will fall when you enter retirement.

Why Choose Jason Rubin Insurance Services?

With over twenty years of experience, Jason Rubin Insurance Services is well-positioned to get you the insurance coverage you need at a great price. We help you compare the most optimal plans based on your needs.

Contact us today to ensure you don’t make any common Medicare mistakes and get the best value for your premiums.