5 Medicare Myths That Are Costing Seniors Thousands Every Year

By Dana George – Mar 17, 2026 at 7:18AM ESTKey PointsLetting go of myths surrounding Medicare is the best way to make the most of the program.Understanding what Medicare does and doesn't cover can help with financial planning.Unless you're already receiving Social Security, it's up to you to sign up for Medicare as you turn 65. It's sometimes better to know nothing about a specific topic than to believe a myth. Believing that you know the truth makes it easy to move through life without further investigation on the subject -- and it's probably something we've all been guilty of. The danger of holding onto myths is how much they can cost. For example, seniors who fall for any of these five myths about Medicare can spend far more on healthcare in retirement than they planned for. Image source: Getty Images. Myth 1: Enrollment is automatic It sometimes feels as though the federal government knows everything there is to know about us, including the moment we were born. However, that doesn't mean it automatically enrolls you in Medicare at age 65. Only those who already receive Social Security are automatically enrolled. Everyone else must sign up during the initial enrollment period (the three months before to the three months after you turn 65). Myth 2: Anyone with access to employer coverage can stick with it, rather than sign up for Medicare The reality is that some people can delay signing up for Medicare if they're covered by an employer-sponsored health plan. However, if you're one of the millions who work for a company with fewer than 20 employees, you aren't typically eligible to delay Medicare. Here's why that matters: Failure to sign up for Medicare can lead to a 10% penalty for every year you delay. Myth 3: Medicare is free for retirees The majority of Medicare recipients pay between $202.90 and $689.90 per month for Part B coverage -- the portion that covers outpatient care, medically necessary services, and preventative services. It's a smart financial expense to plan for. Myth 4: Medicare covers all medical costs, including long-term care This myth may end up being one of the most expensive a retiree can have, and the one most likely to drain their savings account. In reality, Original Medicare (Parts A and B) has deductibles, copays, and coinsurance. It doesn't cover vision, dental, hearing, or long-term care. Myth 5: Once you've chosen a Medicare plan, it stays the same every year You're not stuck with a Medicare plan forever. Not only do you have the right to change plans annually, but you owe it to yourself to review what's available each year. There are always moving parts when it comes to Medicare, and you never know when a better plan will come along that can save you money. A vital part of retirement planning is ensuring that what you believe to be true about Medicare is accurate. That way, you can make healthcare decisions that make sense for you.Read NextMar 17, 2026 •By Bram BerkowitzIf Your Child Was Born in 2025 or Later, the One Big Beautiful Bill Has a New Savings Benefit for YouMar 17, 2026 •By Matthew BenjaminIs the $1,000 Government Seed Money for Trump Accounts Worth Claiming?Mar 17, 2026 •By Maurie BackmanThe Average 401(k) Balance Today May Surprise YouMar 17, 2026 •By Matt Frankel, CFPThe Hidden Retirement Killer Nobody Budgets ForMar 17, 2026 •By Matthew BenjaminWas Your Child Born Since January 2025?

Here Is How to Claim a Trump Account Benefit.Mar 17, 2026 •By Maurie Backman3 Social Security Mistakes Married Couples Should AvoidAbout the AuthorDana George is a contributing retirement and Social Security expert at The Motley Fool. Previously, Dana spent five years writing for Motley Fool Money and 20 years as a newspaper reporter. She is also the author of four published novels. She holds a bachelor’s degree in business management from Spring Arbor University. .TMFByGeorge