When I first started digging into Medicare, I thought I’d just sign up, pick a plan, and then go about my business of trying to perfect my golf swing and avoid eating too many cookies with my coffee. It turns out Medicare is not quite that simple. In fact, it can be downright confusing, and making the wrong move can quietly drain your bank account faster than a leaky faucet you keep meaning to fix. Over the years, I’ve learned that avoiding common Medicare mistakes is just as important as choosing the right plan. Today I want to share some lessons, tips, and even a few embarrassing stories so you can avoid medicare mistakes that cost retirees real money.

The first mistake I’ve seen people make is waiting too long to sign up. Medicare isn’t like your old health insurance plan where you can jump in whenever you feel like it. If you miss the initial enrollment period, you may end up with penalties that stick with you for life. Yes, you read that right, for life. It’s like a bad subscription service you can’t cancel, only instead of magazines you never read, you’re stuck with higher premiums every single month. Signing up during the right window, usually when you turn 65, is crucial unless you’re still covered by an employer plan. And even then, you need to know the rules, because not all employer coverage allows you to delay without penalty. The government doesn’t forgive ignorance in this department, so it pays to double-check.

Another costly mistake is assuming Medicare covers everything. Let me tell you, it doesn’t. People often think Medicare is the golden ticket that makes all medical expenses disappear, but unfortunately, it doesn’t cover dental care, hearing aids, or routine vision services. I remember the first time I priced out hearing aids, and I nearly needed smelling salts to recover from the shock. They can cost thousands of dollars, and Medicare doesn’t pay a dime. That’s why it’s important to plan ahead and budget for those out-of-pocket costs, or look into supplemental insurance that can help fill those gaps. Don’t let yourself be blindsided like I was, standing in the audiologist’s office wondering if I should just learn to lip-read instead.

Choosing between Original Medicare and Medicare Advantage is another place where retirees stumble. I used to think this was just a matter of preference, like whether you prefer chocolate or vanilla ice cream. In reality, the choice can impact your wallet in major ways. Original Medicare with a Medigap policy may offer more flexibility with doctors, but you’ll pay higher premiums. Medicare Advantage plans often have lower premiums, but they come with networks and rules that can surprise you. For example, you might discover that your favorite specialist is suddenly out-of-network, leaving you with a hefty bill. I know a friend who learned this lesson the hard way when he needed care while traveling out of state. His Advantage plan didn’t cover it, and he had to pay out of pocket. That trip cost him far more than the price of his plane ticket.

Let’s talk about prescription drug coverage, because this is where a lot of people get tripped up. Medicare Part D isn’t optional if you want to avoid penalties. Sure, you can skip it if you don’t take any medications now, but you’ll pay the price later if you need it and didn’t sign up when first eligible. The penalty gets tacked onto your premiums and stays there for good. It’s a little like the government’s way of wagging a finger at you for not planning ahead. I once met a gentleman who avoided signing up for Part D because he was healthy and didn’t take any prescriptions. Years later when he needed medication for a heart condition, he discovered the penalties had piled up and he was paying much more than he would have if he had enrolled earlier. That story was enough to scare me straight.

Speaking of Part D, another mistake is not reviewing your prescription drug plan every year. Plans can and do change. The list of covered medications, called a formulary, might look good this year, but next year your essential drug may be missing or come with a higher copay. I learned this lesson when one of my medications jumped from a low tier to a higher one, doubling my costs. If I hadn’t checked, I would have just accepted the higher bill, thinking there was nothing I could do. But by shopping around during the open enrollment period, I found a plan that brought my costs back down. That one small effort saved me hundreds of dollars. So trust me on this, don’t get lazy about reviewing your plan.

Another common financial misstep is ignoring preventive services. Medicare covers a wide range of screenings and preventive care at no cost to you, but many retirees skip them. It’s almost like we forget that prevention saves money down the road. A free screening today might save you thousands in treatment later. I have a neighbor who put off her annual wellness visit because she thought it wasn’t important. When she finally went, they caught a problem early that could have become a major, and very expensive, issue. Don’t let pride or procrastination cost you your health and your wallet.

I also need to warn about medical billing errors. They happen more often than you think, and if you don’t keep an eye on your Medicare Summary Notices, you could be paying for services you never received. I once spotted a charge for a lab test that I knew hadn’t been done. It took a couple of phone calls to get it fixed, but I saved myself from paying for a phantom test. It’s not the most exciting way to spend an afternoon, but catching errors is one of the simplest ways to keep money in your pocket. Medicare isn’t perfect, and mistakes slip through the cracks.

Now let’s talk about traveling. If you’re like me, you probably want to use retirement to see the world, or at least visit the grandkids without worrying about medical bills. But here’s the thing, Medicare doesn’t cover you outside the United States, except in very limited circumstances. That means if you’re sipping wine in Italy or lounging on a beach in Mexico and something goes wrong, you’re on your own unless you have supplemental coverage. I always remind myself that a little travel insurance is cheaper than selling my car to pay for a hospital stay abroad. Don’t assume Medicare follows you around like a loyal dog. It doesn’t.

Another mistake is not considering income-related adjustments. Medicare premiums aren’t the same for everyone. If your income is above certain levels, you’ll pay higher premiums thanks to something called IRMAA, which sounds like a cranky aunt but is really the Income-Related Monthly Adjustment Amount. Many retirees are surprised by these surcharges because they didn’t realize that things like capital gains, Roth conversions, or even selling a vacation home could bump up their premiums. It pays to think about tax planning in retirement, because a little foresight can save you from paying hundreds more each month for Medicare.

And finally, one of the biggest mistakes is simply not asking for help. Medicare is complicated, and trying to figure it out alone can feel like wandering through a maze blindfolded. There are free resources, like your State Health Insurance Assistance Program, where you can talk to counselors who actually know what they’re doing. I remember sitting down with one of these counselors and walking out feeling like I had just taken a college course in Medicare. It was overwhelming, but also empowering. Getting advice saved me money and gave me peace of mind, and I think that’s something every retiree deserves.

When I look back at all the twists and turns of navigating Medicare, I realize the best advice is to stay proactive. Sign up on time, review your coverage regularly, know what Medicare does and doesn’t cover, and don’t be afraid to ask questions. Retirement is supposed to be about enjoying life, not stressing over medical bills. If you can avoid these mistakes, you’ll save yourself a lot of headaches and probably more than a few dollars. And as I like to say, those dollars are much better spent on ice cream cones with the grandkids than on avoidable penalties or surprise medical bills.

So take it from me, a fellow retiree who has made a few wrong turns and lived to tell the tale. Medicare doesn’t have to be the confusing, money-draining monster it sometimes appears to be. With the right approach, it can provide the coverage you need without wrecking your retirement budget. And who knows, maybe if we play our cards right, we’ll even have enough left over for that dream trip we’ve been putting off. Just don’t forget the travel insurance.

Don’t wait until it’s too late, get your financial house in order today!

Happy retirement planning!