Are those unlimited out-of-pocket expenses from your Original Medicare plan cramping your style (and draining your bank account)? Now’s the time to switch over to an all-in-one Medicare Advantage plan. Most plans include drug coverage, and many also have extra benefits like vision, dental or hearing.

Frustrated with the limits of your Medicare Advantage network? Original Medicare gives you the freedom to see any provider who accepts Medicare. But here’s the trade-off: You’ll lose the built-in cap on out-of-pocket costs that comes with your Advantage plan.

Tip: If you think that neither Original Medicare nor Medicare Advantage will meet your health insurance needs, a Medigap plan might be the solution—it will supplement your Original plan. Check out our article on Medigap plans to learn more.

If you’re already in a Medicare Advantage plan, the AEP is your once-a-year opportunity to switch to a different one for any of these advantages:

• Better coverage
• Cheaper costs
• More suitable provider networks

Tip: Don’t assume you have to make coverage changes during the AEP. If you’re still happy with your current Medicare coverage after you review any upcoming changes (more about that in a minute), you can cross this off your list until next fall. But remember, some Medicare Advantage plans require annual re-enrollment, so be sure to check on yours.

Finally, the AEP lets you make changes to your prescription drug (Part D) plan. Here are your options:

• If you’re currently enrolled in Original Medicare, you can add a Part D plan.
• You can switch your current drug coverage to another one.
• If you no longer need prescription coverage (congrats!), you can simply drop your Part D plan.

Tip: If you’re signing up for Medicare Advantage this AEP, do not sign up for a separate Part D plan. Doing so would automatically cancel your Advantage plan and revert you to Original Medicare. (Most Advantage plans already include prescription drug coverage anyway.)

Now that you’re armed with all the details about the AEP, we hope you’re feeling more confident than ever about getting the right Medicare coverage. But you know what would feel even better? Being aware of the most common AEP mistakes to avoid!

Seriously. Every year, way more people than you might expect hit pitfalls with their Medicare enrollment. And the mistakes can be costly. (Can we just blame these kinds of errors on government incompetence? Probably.) But you can easily avoid most of these potential problems just by watching for them and taking proactive steps.

Let’s go over the most common mistakes to avoid.

Mistake: Sometimes people ignore the AEP, assuming their current Medicare Advantage or Part D drug plan will remain the same and telling themselves they don’t need to do anything. (We get it. Who wants to fill out forms if you can avoid it?)

How it could cost you: What worked for you last year may not work next year. Advantage plans are offered through private insurance companies, so they often change provider networks, coverage rules, premiums and the list of drugs the plan covers—and those changes can happen every year.

The AEP is no time for “set it and forget it.” Every fall, your provider will send you a document called your Annual Notice of Change (ANOC). It outlines all the coming year’s changes to your current plan. Review it to be sure you don’t need to make any adjustments during the AEP.

And if you need advice, our friends at Chapter are RamseyTrusted^® advisors who can help you understand which plan is best for you.

Mistake: Many Medicare users confuse Medicare Advantage with Medicare Supplement (Medigap) plans.

The facts: While the names might sound similar, Medicare Advantage and Medigap are very different kinds of coverage. Medicare Advantage is Original Medicare bundled with some extras, but it has no out-of-pocket max. Medigap is designed to supplement Original Medicare by helping cover coinsurances and deductibles. You can get way more details about how Medicare works here.

Mistake: By now you realize that the AEP is your opportunity to switch out of Medicare Advantage (Part C) and into Original Medicare. So you might assume that adding a supplemental Medigap plan is also fair game during the AEP.

The facts: Although the AEP does allow you to switch the specific Medicare Advantage or Part D plan you’re in, and lets you switch from Medicare Advantage back to Original Medicare, the AEP is not the usual time to add a Medigap plan. Normally, you would sign up for Medigap within the first six months after enrolling in Original Medicare—something most people do during their Initial Enrollment Period (IEP) in the months leading up to and following their 65^th birthday. If you’re switching back to Original during the AEP and want to add Medigap, you’ll have to do one of the following:

• Apply for Medigap separately. Keep in mind that insurers can now charge you more than you would’ve paid originally—or even deny you coverage completely, depending on your preexisting conditions.
• Enroll under a special guaranteed issue situation like moving out of your Advantage plan’s service area, switching back from an Advantage plan within the first year of trying it, or losing an employer health care plan.

Mistake: Are you noticing how many of these classic AEP mistakes involve some form of assumption? Here’s another one: assuming your preferred doctor or hospital is in-network for the Medicare Advantage plan you’re considering.

How it could cost you: Many Medicare Advantage plans have limited provider networks. If you forgot to confirm that your usual providers are in-network for your new Advantage plan during the AEP, you’ll have to decide if sticking with your current providers is worth the higher cost (or even noncoverage) of going out of network.

Mistake: Since long lists of prescription drugs (sometimes called formularies in Medicare forms) can be boring or intimidating, it’s no surprise that many Medicare participants forget to make sure their medication is covered under their plan each year.

How it could cost you: Prescription drugs are obviously a big deal for both your wallet and your health. So forgetting to check up on coverage and price within your specific Part D or Advantage plan during the AEP could be expensive and dangerous. Drug formularies vary a lot. Look to see if your new plan covers your medication, and keep in mind that it might require higher copays than your old plan.

Mistake: We understand the appeal of the can-do attitude when it comes time to sign up during the AEP. After all, no one cares more about your money and your health than you do! But we also know from personal experience and plenty of customer stories that Medicare is super confusing. When you need help, the AEP is no time to go rogue without any advice from people in the know.

How it could cost you: Signing up for coverage you don’t need or don’t fully understand could cost you plenty and in several ways. Being unable to cover medical bills is only the biggest and most obvious one—you could also experience coverage gaps, high out-of-network costs or delays in treatment.

This AEP, don’t let those problems set you back. Get help from our RamseyTrusted friends at Chapter.

Mistake: We all know life’s busy. Sometimes people get so slammed, they completely forget to make their Medicare changes by the December 7 AEP deadline.

How it could cost you: If you miss the deadline, you may be stuck with your current plan for another year—or worse, face late penalties or a coverage gap.

So put this deadline on your desk calendar or in your phone reminders, or cover your computer in sticky notes. Do whatever it takes to be sure this deadline doesn’t pass you by.

If you don’t make any changes during the AEP—let’s say you forgot to look at the documents—you’ll probably just remain in your current plan (Medicare Advantage or Part D) until the next AEP. That’s right—another year of your current plan by default. And that holds even if the plan’s costs or benefits change (another good reminder to get familiar with your plan’s ANOC).

The only way to make a change after the deadline is by qualifying for a Special Enrollment Period (SEP) because you moved, lost coverage, or became eligible for Medicaid.

As we’ve already mentioned above with other common AEP mistakes, just sliding by default into last year’s Medicare plan could mean higher costs or losing access to your preferred doctors or medications.

Let’s say you were planning to make a change to your prescription drug (Part D) plan during the AEP, but whoops! The deadline flew by and now you’re stuck with your original and automatically renewed drug plan—you know, the one you wanted to change to save money? Well, now that you’ve missed your AEP deadline, you’ll just have to stick with your current plan until next fall or hope you somehow qualify for a Special Enrollment Period.