5 Health Insurance Mistakes Retirees Should Avoid in 2025

For most Americans, reaching retirement age means relying on Medicare for healthcare insurance. Research from KFF found that 67 million Americans are enrolled in Medicare – about 89% of whom are 65 or older. Based on population data, this means roughly 95% of U.S. seniors have some form of Medicare plan.

Bạn đang xem: 5 Health Insurance Mistakes Retirees Should Avoid in 2025

Read More: I’m a Retirement Planner: 7 Ways I Am Guiding Clients Now That Trump Won

Find Out: 3 Things Retirees Should Sell To Build Their Retirement Savings

As with private insurance, it’s important to come up with the right Medicare strategy to maximize your coverage and minimize your costs. Part of that strategy involves avoiding mistakes – and a good way to do that is to familiarize yourself with some of the changes on the horizon for 2025.

For example, beginning in January 2025 there will be a $2,000 cap on what Medicare enrollees must pay out of pocket for prescription drug costs. The new rule can help you save money — but it might also cause health insurers to increase their monthly premiums for Part D prescription drug plans.

Here are five health insurance mistakes retirees should try to avoid in 2025.

Xem thêm : Neptune Flood Releases Analysis of Primary Residential Flood Insurance

If you’re covered under a private health insurance plan, then you know to check your premium and other costs carefully. The same holds true for Medicare, but many retirees don’t take a close enough look. Although Medicare is a government program, it’s not free or even necessarily cheap — especially if you are in a high-income bracket.

The Center for Retirement Research at Boston College (CRR) cited data on the various cost tradeoffs between choosing a Medicare Advantage policy and a Medigap policy paired with a Part D drug plan. Medigap is supplemental Medicare insurance you can buy from private insurers. In 2024, the annual out-of-pocket limit for medical care under an Advantage insurance policy is $8,850. So while Advantage plans might seem cheaper on paper, that’s not the case for everyone.

Discover Next: I’m a Gen X Retiree: 6 Things I’m Doing Financially Until I Can Receive Social Security

A common mistake retirees make is not checking the new Medicare premiums and deductibles that go into effect each year. Here are the changes for 2025, according to the Centers for Medicare & Medicaid Services (CMS):

• The standard monthly premium for Medicare Part B enrollees will be $185, up from $174.70 in 2024.

• The annual deductible for all Medicare Part B beneficiaries will be $257 in 2025 vs. $240 in 2024.

To learn more about Part A and Part B premiums and deductibles in 2025, visit this CMS website.

Xem thêm : The Biggest Health Insurance Giants in America

Story Continues