MEDICARE
Open enrollment: What happens if you pick the wrong insurance plan?
There are plenty of problems that come with selecting the wrong Medicare plan, especially with no socialised healthcare in the US as a backup.
Medicare open enrollment begins on 1 November, giving people who use Medicare the chance to change their plan.
What can be altered during Medicare open enrollment?
- You can switch from Original Medicare (Part A and Part B) to a Medicare Advantage plan or vice versa.
- If you’re already enrolled in a Medicare Advantage plan, you can switch to a different one.
- If you have a Medicare Part D prescription drug plan, you can switch to a different one.
- If you’re currently on Original Medicare, you can enroll in a Medicare Advantage plan.
- If you don’t have prescription drug coverage, you can enroll in a Medicare Part D plan.
Open enrollment is the one opportunity each year for beneficiaries to make changes to their Medicare coverage. If you choose the wrong plan, you will be stuck with it until the next open enrollment period except in a few circumstances.
If you don’t apply during this time then you will have to wait until next year to apply again, potentially leaving you without coverage.
The problems that could arise by choosing the wrong Medicare plan
The biggest issue with selecting the wrong Medicare plan is the cost. These vary wildly, including aspects such as: premiums, deductibles, copayments, and coinsurance. These costs are split across four tiers: Bronze, Silver, Gold, and Platinum. Bronze coverage has the cheapest premiums but the most expensive out-of-pocket costs, while Platinum has the highest monthly premiums but also the most generous coverage.
It’s essential to choose a metal tier that aligns with your specific healthcare needs and budget. Consider factors such as your expected medical expenses, how often you visit healthcare providers, your tolerance for out-of-pocket costs, and your monthly premium budget when selecting a health plan.
Choosing a plan may be difficult, but no one knows your body like yourself. If you get ill a lot, choosing a plan with high premiums will not be worthwhile. If you are the opposite, then the opposite would apply. If you choose a plan with high out-of-pocket expenses that you can’t afford, getting ill is then a real problem if you have to fork out lots of money just to stay alive.