If you are turning 65 and are about to enroll in Medicare health benefits can be very confusing. The purpose of this post is to divide the information regarding the Medicare enrollment process into digestible pieces. Today, we’re simply talking about common mistakes that you must avoid.

Late Enrollment

Regarding your Medicare health insurance, pay close attention to your initial enrollment period. According to Medicare.gov, you have a 7-month window (a.k.a. Initial Enrollment Period) to enroll in your health benefits. This period begins 3 months before you turn 65, includes the month you turn 65 and ends 3 months after the month you turn 65. Enrolling late could increase rates through late enrollment penalties.

Unexpected Health Expenses

When you retire, unexpected health expenses are on you. When enrolling in your health benefits, make no assumptions about how your coverage will work. Although your health insurance benefits at age 65 are very comprehensive, you still have to worry about costs not paid for by your insurance benefits. During your initial enrollment period, the health insurance decisions you make could affect you for the rest of your life.

Loss of Guaranteed Issue

Aside from late payment penalties, enrolling late in Medicare part B could void your right of guaranteed issue for a Medicare Supplement policy. Timing is key! Enrolling late for folks with preexisting conditions could result in underwriting restrictions and temporary coverage exclusions.

Missing the Initial Eligibility Period Altogether

Lastly, when turning 65, some folks just simply let the 7 month Initial Enrollment Period pass without doing anything. For folks that delay enrolling in their health benefits for months or even years, the penalties pile up. Aside from that, enrolling into a supplement policy become even more difficult as the beneficiary probably will not qualify for a “special enrollment period”.

Timing is Key

Most of the most common mistakes in the Medicare-decision process can avoided by simply paying close attention to your timing. Whether you simply chose the government provided benefits, or combine it with some sort of Medicare Supplement policy and prescription drug plan, your timing will determine and the choices you make will have financial consequences for the remainder of your life.