Medicare is essential for millions of Americans 65 and older, but navigating its complexities can lead to costly mistakes — ones that impact your healthcare coverage and your wallet. Knowing these common pitfalls can help you make smarter choices and avoid unexpected expenses.

Here are 5 costly Medicare mistakes — and tips on how to avoid them.

1. Missing Your Initial Enrollment Period (IEP)

The Mistake:
Many people delay enrolling in Medicare when they first become eligible at age 65, assuming they don’t need it yet — especially if they’re healthy. However, missing your Initial Enrollment Period could result in permanent late enrollment penalties for both Part B (medical insurance) and Part D (prescription drugs).

How to Avoid It:

• Mark your calendar: Your IEP starts 3 months before your 65th birthday and lasts 7 months total.

• If you’re still working and covered by a credible employer plan, you may qualify for a Special Enrollment Period (SEP) instead.
  
  

2. Choosing the Wrong Plan Without Comparing Options

The Mistake:
Jumping into the first Medicare Advantage or Medigap plan you see without comparing coverage, costs, and provider networks. This can lead to unexpected out-of-pocket expenses or limited access to your doctors.

How to Avoid It:

• Use the Medicare Plan Finder Tool at Medicare.gov to compare plans in your area.

• Consider your medications, doctors, and healthcare needs for the year ahead.

• Review plans annually — they change!
  
  

3. Assuming Original Medicare Covers Everything

The Mistake:
Many seniors think Medicare covers everything — but it doesn’t cover dental, vision, hearing aids, or long-term care. This assumption can lead to surprise expenses.

How to Avoid It:

• Consider a Medicare Advantage plan that includes extra benefits.

• Look into separate dental, vision, or long-term care insurance if needed.

4. Not Signing Up for Medicare Part D (Prescription Drug Coverage)

The Mistake:
Skipping Part D coverage because you’re not currently on any medications. Unfortunately, waiting too long to enroll means you’ll pay a lifetime late enrollment penalty when you do need it.

How to Avoid It:

• Enroll in a low-cost Part D plan during your initial enrollment, even if you’re not taking medications now.

• Review your drug coverage annually to ensure it still fits your needs.
  
  

5. Failing to Review Coverage During Annual Open Enrollment

The Mistake:
Many beneficiaries stick with the same plan year after year — even as plan costs, coverage, and provider networks change.

How to Avoid It:

• Review your plan every year during Medicare Open Enrollment (October 15 – December 7).

• Compare new plans, pricing, and coverage — switching may save you money or provide better benefits.