Medicare Open Enrollment: Debunking 6 Common Myths

Healthcare can be expensive for retirees, and not getting the insurance coverage you need to defray the costs could become one of your most costly retirement mistakes.

One of the best ways to ensure you don't end up with a stack of medical bills you can't afford is to shop for Medicare coverage each year during open enrollment. Unfortunately, far too many people miss out on the chance to get the right policy because they fall victim to common myths about Medicare open enrollment.

In particular, here are six misconceptions you may have that could prevent you from getting the best and most affordable healthcare coverage.

Original Medicare and Medicare Advantage Plans are the same

Far too many seniors believe there's just one form of "Medicare" and there's no real difference between the plans. But that simply isn't true. In fact, you have two primary coverage options — and they can be very different.

Original Medicare is Medicare Parts A and B. It's administered by the government, with Part A covering hospital insurance and Part B covering outpatient care (albeit with 20% coinsurance costs, so it pays for only 80% of covered services).

Medicare Advantage is an alternative to original Medicare, and your coverage comes from private insurers. Medicare Advantage Plans must provide the coverage that original Medicare does, but they can also provide additional benefits such as coverage for hearing aids or eye glasses (neither of which are covered by original Medicare). Most Advantage Plans also pay for prescriptions; original Medicare does not unless you also purchase a Medicare Part D plan.

The takeaway: You shouldn't assume original Medicare is right for you without looking at what Advantage plans have to offer.