The 1 Medicare Move You Can’t Afford to Delay

Turning 65 comes with a long Medicare to-do list. You’ll need to decide when to enroll and if a Medicare Advantage plan makes more sense than original Medicare.

But if you decide to stick with original Medicare, you’ll need to plan carefully. Unlike Medicare Advantage plans, original Medicare does not put a cap on your annual out-of-pocket costs. And when you’re on a fixed income, that can be a scary thing.

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That’s why enrollees in original Medicare often choose to buy a Medigap plan for supplemental insurance. But if you’re going to get Medigap, the right timing is everything.

Why Medigap might be crucial to your financial security

Medigap is private insurance that helps cover some of the out-of-pocket costs Medicare doesn’t pay. Original Medicare generally covers a large portion of approved healthcare expenses, but enrollees are still responsible for deductibles, coinsurance, copayments, and other costs.

A Medigap policy can fill many of those “gaps,” making healthcare expenses more predictable. And while you’ll pay a separate premium for Medigap, if you tend to use your Medicare coverage a lot, you may find that it’s more than worth it.

Make sure to enroll in a timely manner

While Medigap could be a financial life-saver for Medicare enrollees, signing up on time is key. Your initial window to buy a Medigap plan lasts six months, and it begins the month you’re both age 65 or older and enrolled in Medicare Part B.

During that window, insurance companies generally must sell you a Medigap policy regardless of your health. And they can’t deny you coverage or charge you more because of pre-existing medical conditions.

Once that six-month period ends, though, buying Medigap could get a lot more complicated — and expensive. At that point, insurers can charge more based on your health history, and you may struggle to find affordable coverage.

Now you might assume that it doesn’t make sense to get a Medigap policy right away if you’re healthy at the time of your Medicare enrollment. But even if that’s the case, there’s no guarantee your health will remain the same a few years down the line. Waiting to buy Medigap could prove an expensive decision if your health takes a turn for the worse.

When it comes to Medicare, there are certain decisions you can revisit later. But enrolling in Medigap isn’t one of them. If you want that coverage, sign up during that six-month window to secure the financial protection you need.

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