Medicare is complicated. The rules change every year. The enrollment windows are strict. And the penalties for getting it wrong are permanent. After helping hundreds of Alabama seniors navigate Medicare, these are the seven most expensive mistakes we see — and every one of them is preventable.
Mistake #1: Missing Your Initial Enrollment Period
Your Initial Enrollment Period (IEP) is a 7-month window around your 65th birthday. Miss it, and you face a Part B late enrollment penalty of 10% for every 12 months you were eligible but didn't enroll. That penalty is added to your premium for the rest of your life.
Mistake #2: Choosing a Plan Based Only on Premium
The cheapest premium is almost never the cheapest plan. Total cost = premiums + deductibles + copays + coinsurance + drug costs.
Mistake #3: Not Reviewing Coverage During Annual Enrollment
Drug formularies change every year. Plan networks change. Premium costs change. If you set it and forget it, you may be paying more than you need to or losing coverage for medications you depend on.
Mistake #4: Not Understanding Supplements vs Advantage Plans
A Medicare Supplement (Medigap) works with Original Medicare and covers your cost-sharing. A Medicare Advantage plan replaces Original Medicare with a private plan that has its own network, rules, and cost structure.
Mistake #5: Ignoring Medigap Open Enrollment
You get one guaranteed-issue window for Medigap: the 6-month period starting when you're 65 and enrolled in Part B. Miss it, and you'll face medical underwriting.
Mistake #6: Assuming Medicare Covers Everything
- Long-term care (nursing home, assisted living)
- Dental care (routine cleanings, dentures, implants)
- Vision care (eyeglasses, contacts)
- Hearing aids
- Most care outside the United States
Mistake #7: Not Working with an Independent Agent
Captive agents represent one company. An independent agent represents multiple carriers and can compare options across the entire market. In Alabama, Plan G premiums for the same coverage can vary by $50+ per month depending on the carrier.
