Busting 10 Medicare Myths

Medicare is a vital health insurance program for seniors, but there are a lot of myths floating around that can cause confusion.

Today, we’re going to break down 10 common Medicare myths, so you can make informed decisions about your healthcare. Let’s dive in!

1. You Must Enroll in Medicare at Age 65

A common misconception is that everyone must enroll in Medicare when they turn 65. While that’s generally true for many, it’s not the case for everyone.

If you have job-based health insurance—whether through your employer or your spouse’s employer—and you work for a company with 20 or more employees, you can delay enrolling in Medicare without penalties.

You can wait until you or your spouse stop working or lose coverage, whichever happens first. However, it's important to check with your insurance provider to see if delaying Medicare is the right move for you.

2. You’re Automatically Enrolled in Medicare at Age 65

Another myth is that everyone is automatically enrolled in Medicare when they turn 65. The truth is, you’re only automatically enrolled if you’re already collecting Social Security benefits.

If you’re not collecting Social Security, you must actively enroll yourself. Your initial enrollment period starts three months before you turn 65 and ends three months after your birthday month.

If you delay enrollment because you're covered under an employer’s plan, you have an eight-month window to sign up once your employer insurance ends. Miss this window, and you’ll face penalties!

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3. Medicare Will Notify You When It’s Time to Enroll

Medicare doesn't send out personal reminders about when you need to enroll. While you’ll likely receive plenty of mail about different Medicare plans, it’s your responsibility to manage your enrollment. To sign up, visit the Social Security website at SSA.gov and follow the steps to enroll in Medicare.

4. Medicare is Free

Many people believe that Medicare is completely free. While Medicare Part A (hospital insurance) is free for most people who’ve worked for at least 10 years in the U.S., that’s not the case for every part of Medicare.

For instance, Medicare Part B (outpatient care) has a monthly premium, which in 2025 is $174.70. This amount can increase based on your income level. Additionally, there are deductibles, co-pays, and other out-of-pocket costs associated with Medicare.

5. Your Income Affects Your Eligibility for Medicare

This is absolutely false. As long as you’re 65 or older (or qualify for Social Security disability after 24 months), you can sign up for Medicare, regardless of your income.

However, if your income is above certain thresholds, you might pay higher premiums for Part B and Part D (prescription drug coverage). But the good news is, income doesn’t prevent you from enrolling.

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6. COBRA Insurance Lets You Delay Medicare Enrollment

If you’re using COBRA insurance after leaving a job, this doesn’t exempt you from enrolling in Medicare at age 65.

COBRA allows you to continue your employer health insurance, but it doesn’t substitute for Medicare. If you’re still on COBRA past 65, you need to enroll in Medicare during your initial enrollment period to avoid late penalties.

7. You Should Automatically Enroll in Medicare Part A

While Medicare Part A is free for most people, enrolling in it as soon as you turn 65 isn’t always the best option—especially if you’re still working.

If you have a high-deductible health plan and contribute to a Health Savings Account (HSA), enrolling in Part A would disqualify you from contributing further to your HSA.

So, if you're still working and contributing to an HSA, it’s a good idea to delay enrolling in Medicare Part A until you retire.

8. Medicare Advantage Plans are Expensive

Some people assume Medicare Advantage plans are expensive, but that’s not necessarily true.

Medicare Advantage plans, offered by private insurance companies, can often have low premiums, and in some cases, they might even be free.

These plans are often subsidized by the government, so they tend to be more affordable than other options. Just be sure to check the network of doctors, prescription coverage, and any additional benefits to find the right plan for your needs.

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9. Medicare Advantage Plans are Better Than Medigap Plans

While Medicare Advantage plans may be more affordable, they’re not necessarily better than Medigap plans, especially when it comes to coverage.

Medigap plans, which are standardized by the government, generally offer more comprehensive coverage and fewer out-of-pocket costs. On the other hand, Medicare Advantage plans, offered by private insurers, often have higher out-of-pocket costs and may not cover as many services.

It’s important to weigh the pros and cons of each, based on your personal health needs.

10. Once You Choose a Medicare Plan, You’re Stuck With It

Many people believe that once they choose a Medicare Advantage or Medigap plan, they can’t change it.

The good news is that’s not true! Every year, from October 15 to December 7, you can switch from one Medicare Advantage plan to another.

If you’re unhappy with your current plan, you can also switch to a Medigap plan during this time. However, switching from Medicare Advantage to Medigap may depend on your state’s regulations, and some states (like Connecticut) protect you from discrimination based on pre-existing conditions.

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Closing Thoughts

Navigating Medicare can be tricky, but understanding these common myths is a good first step toward making the best choices for your health coverage.

Always do your research, talk to an expert if needed, and make sure you’re making decisions that align with your healthcare needs and financial situation. The more informed you are, the better equipped you’ll be to take full advantage of the benefits Medicare offers.

If you have a question or topic that you’d like to have considered for a future episode/blog post, you can request it by going to www.retirewithryan.com and clicking on ask a question. 

As always, have a great day, a better week, and I look forward to talking with you on the next blog post, podcast, YouTube video, or wherever we have the pleasure of connecting!

Written by Ryan Morrissey

Founder & CEO of Morrissey Wealth Management

Host of the Retire with Ryan Podcast