Experts Share The 5 Biggest Medicare Mistakes They See Retirees Make
- - Experts Share The 5 Biggest Medicare Mistakes They See Retirees Make
Michelle SmithNovember 13, 2025 at 8:50 PM
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Rising health care costs and economic instability have made it more important than ever for seniors to save money with Medicare. Signing up on time is a smart money move for seniors that boosts your budget while protecting your health. But Medicare is famously complicated, and a few costly mistakes can derail your entire retirement budget.
Fortunately, you don't have to deal with Medicare worries on your own. We consulted several Medicare, insurance, and healthcare experts about what mistakes they've seen seniors make, and gathered their advice so you can steer clear of common financial pitfalls.
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1. Not understanding the financial consequences of signing up late
Dr. Geny Augustine, a Family Medicine Physician at Solace Health, says she sees patients make costly Medicare mistakes primarily "because of the complexity of the system and its hard-and-fast timing rules."
"One costly mistake is failing to sign up during the initial enrollment period, which can lead to a 10% penalty for each year of delay when enrolling in Part B," says Dr. Augustine. That penalty doesn't go away — the surcharge lasts for the rest of your life. This means that if you went three years without signing up for Medicare Part B on time, you'll always pay a 30% higher premium on Part B with no potential for lowering the price.
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2. Failing to compare Medicare Advantage plans every single year
Renee Fry, CEO of retirement planning company Gentreo, wants to remind retirees that Medicare Advantage plans change every year, and that a plan that saved you money before might not be the best fit for your budget or healthcare needs in the new year.
"Too many assume their plan from one year to the next is still the best option," Fry says, "[but] this is not always true. You need to use new calculators and tools to find out what is right for you and any specific coverage you may need."
Whitney Stidom, VP at the health insurance marketplace eHealth, agrees: "Medicare Advantage plans can vary, and the average person has more than 40 Medicare Advantage plans to choose from in their local area." In spite of the number of plans, "a recent eHealth survey found 39% of Medicare Advantage beneficiaries incorrectly believe these plans are 'generally all the same.'" Stidom says that actively comparing plans on the marketplace may help people save an average of over $1,800.
3. Believing that every Part D plan covers the same prescriptions
Medicare Part D covers prescription medications, but not every Part D plan helps pay for every medication. If you're already taking medications, experts say it's crucial to compare how much each drug costs on different plans to see which saves you the most money.
According to Stidom, "While many Medicare Advantage and Part D plans provide prescription drug coverage, each has a different list of medications they will cover, and they may be covered at different cost sharing tiers."
Brandon Hill, a senior advisor and Medicare specialist at Beckett Financial Group, explains that Part D plans typically change every year, and issues can occur when a patient is prescribed a medication that isn't included on their plan's list of covered drugs.
Comparing plans during the annual Part D open enrollment period can save you a huge chunk of change. Hill says that at the end of October 2025, he had a client save over $1,100 on his medications in 2026 by changing to a different plan.
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4. Forgetting about Income Related Monthly Adjustment Amount (IRMAA) thresholds
Did you know that if your retirement income is over a certain threshold, you're required to pay a surcharge for Medicare Part B and D? Far too many seniors don't, and since IRMAA threshold calculations are based on your tax returns from two years earlier, it's all too easy to get hit with a massive financial strain you didn't see coming.
Philip Gallant of The Optimus Group, LLC, stresses that the only solution is to proactively pay attention to how you plan your retirement income. "Keep your modified adjusted gross income under $206,000 per year if you're married, $109,000 if you're single or widowed, and $218,000 if you are married filing jointly," he says.
Fortunately, you don't have to plan your tax strategy alone. Gallant recommends talking to a financial advisor — well in advance of retirement, if possible. "Proper retirement income planning should begin no later than 10 years before you plan to retire so that your advisor can forecast your income and determine whether you will be subjected to added part B premiums.
5. Not budgeting for items Medicare doesn't cover, especially long-term care
Ocean Van is the owner of Home Helpers Home Care in San Diego. As a long-term care expert, he emphasizes that Medicare does not cover long-term care expenses, including services like "personal care, transportation, or help around the house."
His recommendation? Retirees should "explore long-term care insurance or hybrid life insurance with care benefits while it's still affordable during their 60s. Once chronic conditions develop, it's often too late to qualify." Planning ahead for care doesn't just impact your bottom line: Van points out that it "helps retirees stay independent longer," too.
Bottom line
Following Medicare advice from experts is a key way to ensure you avoid wasting your retirement savings once you leave the workforce. While advice that applies to everyone in your age bracket is a great starting point, nothing compares to the personalized advice you can get by meeting with a retirement planner, financial advisor, or Medicare consultant.
A professional can help you chart your financial future, empowering you to make smart Medicare choices that support your health without draining your bank account.
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Source: “AOL Money”
