Use these experts’ tips to save money in the final days of Medicare open enrollment

Medicare, the government health insurance for disabled Americans and those over 65, has undergone some of the most significant changes since its introduction in 2006.

Experts recommend enrollees take a close look at changes in their Medicare plans during open enrollment season, which runs through Dec. 7.

Investopedia spoke with Tim Smolen, program manager for Statewide Health Insurance Benefits Advisors, a division of the Washington State Office of the Insurance Commissioner, about how enrollees can reduce the price of their Medicare plan and reduce healthcare costs. The interview has been edited for brevity and clarity.

INVESTOPEDIA: How can enrollees find the best Medicare plan that fits their needs and budget?

TIM SMOLEN: We definitely recommend the Medicare website. They have a great tool called Plan Finder that allows you to compare all the Medicare Advantage plans there. These plans are sold very locally. So it makes sense to go there as they have the most up to date information on the rates available to you in the zip code where you live and lots of details about the rates such as: B. Coverage Exclusions and Exclusions – Pocket Costs.

For many older people, prescription medications are a very big deal. On the Plan Finder website, you start by listing your covered medications, including dosage, strength and frequency. This could result in high premium and deductible costs for you.

We would also recommend that people download what’s called proof of coverage form because the plan finder just has the headlines, right? It says, “Yes, we have a hearing aid benefit,” but it doesn’t tell you in detail what that means. Typically, there are terms or requirements to the additional benefits that Medicare Advantage plans include.

Have a one-on-one conversation with yourself or have a good friend interview you and say, “Okay, what are your must-have things versus your nice-to-have things?” Then you won’t go with it Comparisons abound in this excruciating level of detail about things that don’t actually matter that much to you.

INVESTOPEDIA: How would someone decide between a higher or lower premium?

TIM SMOLEN: That’s part of the preliminary conversation you have with yourself. Some enrollees simply want to have a Medicare supplement plan because they know that insurance will pay when Medicare pays and they essentially won’t see any bills or have any costs. Some people like this because it is very predictable.

What people generally prefer about Medicare Advantage plans is that they have very low premiums. Again, it depends on where you live, but many of them still don’t have a premium.

People will say, “I like this zero premium.” I can put a little money aside each month in case I have medical bills or need to claim my deductible, and it makes me feel better and willing to live with the uncertainty of my total costs I’ll do it because I like the zero premium.’

INVESTOPEDIA: What can enrollees do if they can’t afford their current original Medicare plan?

TIM SMOLEN: Make sure you’re not paying too much for your basic Medicare coverage. For most people, Medicare Part A is free because they have worked enough quarters to pay into the Medicare trust fund.

However, almost everyone has a Medicare Part B premium. The standard premium for 2024 is $174.70, but some people pay more. They impose a surcharge for high-income earners, which we call IRMAA (Income-Related Monthly Adjustment Amount).

If you are asking for a surcharge for your Medicare Part B insurance in January 2025, you should check to make sure it is correct. The challenge here is that the way the 2025 Medicare Part B premium is calculated is based on the income you filed (on your taxes) in April 2024, which in turn is based on your income from January through December 2023 based. Many people see their income drop significantly when they retire. This is not immediately reflected in the tax return. It is a very simple procedure to appeal against this.

There are programs for low-income earners where the government covers their Medicare Part B premium. Getting that $175 a month back from your Social Security check is a really big deal and means a lot to people. The application process is pretty straightforward. You can do this on the Social Security website or by calling your local Medicaid office, which can help you apply.