You hope you'll stay healthy throughout your retirement, but everyone needs to visit a doctor now and then. When you do, you'll probably rely upon Medicare if you're 65 or older. It's widely accepted and covers several important services, but it's also misunderstood.
That might not seem like a big deal, but getting Medicare details wrong could be costly, particularly if you think you have coverage for something when you really don't. Here are four of the most common Medicare misunderstandings you should correct as soon as possible.
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1. Medicare is free
Original Medicare, which consists of hospital insurance (Part A) and medical insurance (Part B), has premiums, deductibles, and copays. Premiums are the monthly costs you pay to keep your policy in force. Most people don't pay one for Part A, but they do for Part B. This often comes out of your Social Security benefits.
Deductibles are the amount you pay before the insurance will cover any of your costs. Copays are what you must pay even after meeting your deductible. The government hasn't released the 2026 Medicare costs yet, but this is something to watch for as you put your budget together for next year.
2. Medicare will cover all my healthcare expenses
Medicare has a lot of holes in its coverage, including:
- Dental, vision, and hearing care.
- Long-term care.
- Prescription drugs.
- Coverage outside the U.S.
If you just have Original Medicare, you'll have to pay for these out of pocket. That can be costly, so many people buy additional insurance, such as a Medicare Part D plan for prescription drugs or a Medicare supplement (Medigap) policy, to avoid this.
There are also Medicare Advantage plans. These are alternatives to Original Medicare offered through private health insurers. They cover everything Original Medicare does, as well as some extras.
3. There's no problem with waiting to apply for Medicare
You become eligible for Medicare when you turn 65, and legally, you don't have to sign up then. But signing up late is costly. Your Part B premium will go up by 10% for each year you could have signed up but didn't. If you don't have prescription drug coverage and skip enrolling in a Part D plan, you pay an extra 1% per month.
These penalties last for the rest of your life, so it's definitely not worth taking the risk. Sign up during your initial enrollment period, which runs from three months before you turn 65 to three months after you turn 65, to avoid these extra costs.
4. You don't need to do anything during open enrollment if you're happy with your plan
The Medicare open enrollment period runs from Oct. 15 to Dec. 7 each year. This is often your only opportunity to change your Medicare coverage for the following year. If you do, your new plan begins on Jan. 1.
You might decide to skip reviewing your plan options if you're happy with the coverage you have, but plans change every year. You don't want to wait until you're staring at a huge bill to find out that your plan no longer covers the medication or the treatment you need. Skipping a health insurance review could also mean you miss out on another plan that checks all your boxes but comes with lower costs.
Pick an afternoon to review your 2026 plan options and make any necessary changes. Don't wait until Dec. 7, 2025, to do this in case you have questions about a policy that you need to dig into. Act in the next couple of weeks so you can put it behind you before the holiday season kicks into gear.
