The Important Medicare Advice That Can Maximize Your Savings

According to a 2025 KFF survey of over a thousand people, American adults tend to view the Medicare program favorably, with 82% of survey responders reporting a positive view. Yet, a 2025 eHealth survey showed that 75% of Medicare beneficiaries said choosing a plan is a confusing process. To receive the biggest financial benefit from Medicare, retirees should attempt to avoid major Medicare mistakes like choosing the wrong plan.

With that in mind, the best Medicare advice available to help you maximize savings is to take the time during the Annual Enrollment Period (AEP) to review your current plan, compare it to other options, and ensure you have the right coverage for your health needs and budget. Medicare plans can change significantly from year to year, meaning the plan that was perfect last year may now be costing you extra money. Depending on the plan you choose, you might be able to get healthcare benefits for free with Medicare. The potential for savings makes it worthwhile to investigate your options during the AEP.

Although it can be stressful to try to decipher all your options and cost changes in different Medicare plans from year to year, collecting information during the AEP can help you feel less uncertain. You shouldn't give in to the frustration and ignore the AEP, which would leave you with your current plan that might cost you a lot more money this year or fail to meet your current needs. Instead, learn more about the period.

For those who need to decipher the basics of Medicare AEP, a good starting point is understanding the key differences between Medicare and Medicaid. Medicare is a federal program that provides health insurance for people 65 and older, along with younger people who have certain disabilities or conditions. Medicaid is a program providing health care and long-term care for low-income Americans. 

If you qualify for Medicare, you'll have to select which plans you want during the AEP. Original Medicare includes hospital and medical insurance, and you can add drug coverage or supplemental insurance coverage for an added cost. You can also select a Medicare Advantage plan during AEP. The AEP process runs from Oct. 15 to Dec. 7 each year. Any decisions you make during AEP go into effect the following Jan. 1 and last for the entire year. During the AEP, you can select a different coverage level, switch to a different plan, or choose to remain with your current plan.

Just because you qualify for Medicare doesn't mean you are allowed to use AEP, though, as it's only for people who are already enrolled in a Medicare plan. If you aren't currently using Medicare and just qualified because you recently turned 65, you would select your plan during the Initial Enrollment Period (IEP), which occurs during a seven-month period split relatively evenly around your 65th birthday, instead of during AEP.

Matching the features and services you need to the plan you select is the best way to save money during the AEP process. Some people can save several hundred dollars per year by switching to a plan that features savings on the medications they currently take, for example. You might look for a plan that features lower prices at your preferred pharmacy.

Some Medicare plans provide discounts for in-network care from certain doctors and medical facilities. Make sure the plan you select offers these discounts for your preferred doctors. If you had to switch doctors a few months earlier to an out-of-network doctor, the AEP is your chance to switch to a different plan that covers your new doctor. Additionally, some doctors move in and out of plan networks each year. If your preferred medical provider is leaving your current plan's network, you should receive a separate notification. However, you should always double-check which doctors are covered under your plan during AEP.

Use the AEP to explore whether you qualify for financial help. If your financial situation changed during the previous year, you might now qualify for Medicare Savings Programs (MSPs) that give you some help with paying for your Part A and Part B expenses. You might also want to explore Medicare Extra Help, which is a subsidy program that helps qualifying people with their Part D costs.