Medicare Mistakes: The Common Pitfalls

Navigating Medicare is a rite of passage for retirees—and, as Investopedia’s expert roundtable shows, it’s also a minefield of overlooked rules, surprises, and classic blunders. The number one issue? Not doing the homework upfront. Many retirees don’t spend enough time comparing Original Medicare with Medicare Advantage plans. Opting for the wrong fit can limit your choice of doctors and restrict access to care, especially since Medicare Advantage plans come with strict networks, referral needs, and coverage limits that Original Medicare does not.

As I shared with Investopedia for their article, the most underestimated pitfall isn’t plan selection, but how certain financial moves—like Roth conversions, big IRA withdrawals, or realizing capital gains—can inadvertently push your income over key Medicare thresholds. Since Medicare Part B and D premiums are based on your tax return from two years prior, a poorly-timed maneuver can trigger IRMAA (Income-Related Monthly Adjustment Amount) surcharges that effectively double your premiums. The standard Part B premium in 2025 may be $185, but high earners face monthly costs of $370 or more—all thanks to stealthy income jumps that Medicare flags well after the dust has settled. When planning any major tax move in or near retirement, smart advisors model not only the tax savings but the potential spike in Medicare costs.

Bottom line: Medicare success comes from proactive research, smart plan selection, and a careful watch on how today’s financial strategies can boomerang into tomorrow’s healthcare bills. Don’t assume you can undo an early choice or that your costs will stay flat year-to-year. Treat Medicare enrollment—and annual reviews—with the same rigor you’d give to any six-figure retirement decision.