10 Medicare Mistakes Financial Advisors

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With over 35 years of experience as an insurance broker specializing in Medicare, I've seen all the misconceptions and mistakes financial advisors make regarding this complex program. In this article, I shed light on 10 common pitfalls and provide strategies to avoid them, ultimately helping you add more value to your client relationships.

  1. Not understanding the basics of Medicare

The first mistake is not understanding the basics of Medicare. It's not just for those over 65; it also covers some younger people with disabilities and patients with end-stage renal disease (ESRD). Knowing the ABCDs of Medicare – Part A (hospital insurance), Part B (medical insurance), Part C (Medicare Medigap and Advantage plans), and Part D (prescription drug coverage) – is vital.

  1. Overlooking the importance of timing

Enrolling late in Medicare can lead to lifetime penalties. Ensure your clients know the Initial enrollment period, which begins three months before they turn 65 and ends three months after their birth month.

  1. Ignoring coverage gaps

Original Medicare does not cover everything. It doesn't include most prescriptions, dental care, eye exams, or hearing aids. Advisors must help clients plan for these potential out-of-pocket expenses or consider Medigap or Medicare Advantage plans.