5 Medicare Enrollment Mistakes Minnesota Residents Make When Turning 65

Every year, thousands of Minnesotans turn 65 and navigate Medicare for the first time. And every year, many of them make the same avoidable mistakes — mistakes that can cost hundreds or even thousands of dollars, sometimes for the rest of their lives.

Here are the five most common ones, and how to avoid them.

Mistake 1: Missing the Initial Enrollment Period

Your Initial Enrollment Period (IEP) is a 7-month window centered on your 65th birthday. Miss it without a qualifying reason, and you'll face a permanent late enrollment penalty on your Part B premium — 10% for every 12-month period you were eligible but didn't enroll.

That penalty doesn't go away. It's added to your premium for life.

The fix: Start the process at least 3 months before your birthday month. Don't assume you'll "figure it out later."

Mistake 2: Assuming COBRA counts as creditable coverage

If you're on COBRA when you turn 65, you might think you can delay Medicare enrollment. You can't — at least not without penalty.

COBRA is not considered "creditable coverage" for Medicare purposes. If you rely on COBRA past 65 and delay enrolling in Medicare Part B, you'll owe that late penalty when you eventually do sign up.

The fix: If you're on COBRA at 65, enroll in Medicare during your Initial Enrollment Period.

Mistake 3: Not understanding how employer coverage interacts with Medicare

If you're still working at 65 and covered by your employer's health plan, you may be able to delay Medicare without penalty — but only if your employer has 20 or more employees.

If your employer has fewer than 20 employees, Medicare becomes your primary coverage at 65, and your employer plan becomes secondary. In that situation, delaying Medicare enrollment means your employer plan may not pay claims correctly — leaving you with unexpected bills.

The fix: Ask your HR department exactly how your employer plan coordinates with Medicare, and confirm the employer size before deciding to delay.

Mistake 4: Choosing a plan based on the premium alone

Medicare Advantage plans often advertise $0 premiums, and that's attractive. But the premium is only part of the story. Copays, deductibles, network restrictions, and out-of-pocket maximums vary enormously between plans.

A $0-premium plan with a $7,550 out-of-pocket maximum could cost you far more in a bad health year than a Medicare Supplement plan with a monthly premium.

The fix: Look at the total cost picture — not just the monthly premium. Consider your health, your doctors, and how much risk you're comfortable carrying.

Mistake 5: Enrolling in a plan without checking your doctors and prescriptions

Medicare Advantage plans have networks. If your doctor isn't in the network, you may pay significantly more — or have to find a new doctor.

Part D drug plans have formularies. If your medication isn't covered, you could face much higher costs than you expected.

The fix: Before you enroll in any plan, verify that your doctors are in-network and that your medications are on the formulary at a tier you can afford.

The common thread

All five of these mistakes share the same root cause: not having the right information at the right time. Medicare is complex, and the rules aren't always intuitive.

The good news is that working with a local, independent agent costs you nothing — agents are compensated by the insurance carriers, not by you. And a good agent will take the time to understand your situation before recommending anything.

Schedule a free Medicare consultation with Fred at Lakes Health Insurance. He's an independent agent based in Minnetrista, MN who works with people turning 65 throughout the Minneapolis–St. Paul area.