Top 5 Medicare Mistakes Veterans Make in 2025
After nearly 20 years in the Medicare industry, now working exclusively with veterans, I’ve seen the same costly mistakes repeated over and over. These aren’t careless errors. They’re the predictable result of veterans getting Medicare advice from advisors who don’t understand military benefits.
The financial impact? Some veterans lose $50,000 or more over their retirement. Today, I’m sharing the five most expensive Medicare mistakes I see veterans make in 2025, along with exactly how to avoid them.
Mistake #1: Buying Unnecessary Medigap Coverage with TRICARE for Life
This is the single most expensive mistake I see military retirees make, wasting $2,000 to $3,000 annually on coverage they absolutely don’t need.
Why This Happens
Traditional Medicare advisors see a military retiree approaching 65 and typically recommend Medicare Supplement (Medigap) insurance. They don’t understand that TRICARE for Life already functions as the best Medicare Supplement available. Even better than Medigap because it also works with Medicare options from private companies.
Real Example: A retired Air Force Colonel was paying $240 monthly for Medigap Plan G policies for himself and his wife. That’s $2,880 annually for duplicate coverage. Over 20 years? $57,600 wasted.
The Solution
If you have TRICARE for Life, you do NOT need Medigap. TFL covers all Medicare deductibles, copays, and coinsurance. Save your money. You’re already fully protected.
Mistake #2: Ignoring IRMAA Planning and Appeals
Income Related Monthly Adjustment Amounts (IRMAA) can add hundreds to your monthly Medicare costs, yet most veterans don’t know they can appeal these surcharges.
The 2025 Reality
If your 2023 income exceeded $106,000 (individual) or $212,000 (married filing jointly), you’re paying IRMAA surcharges in 2025 (Source: Medicare.gov). For some veterans, that means paying $628.90 monthly instead of the standard $185 Part B premium.
What Veterans Miss
You can appeal IRMAA if your income has dropped due to:
- Retirement
- Death of spouse
- Divorce
- Loss of income-producing property
- Reduction in work hours
Success Story: A recently retired veteran was facing $296 monthly in IRMAA surcharges based on his 2023 working income. After filing Form SSA-44, his appeal was approved, saving him $3,552 annually.
Important: Download the SSA-44 IRMAA appeal form from our Medicare forms page. We help veterans complete this form correctly.
Mistake #3: Avoiding Medicare Options Due to Outdated Misconceptions
Many veterans avoid Medicare options from private companies because they’ve heard these options “limit doctor choices” or “interfere with VA benefits.” This misconception costs them thousands in benefits they’ve already earned through FICA contributions.
The Truth About Medicare Options in 2025
Here’s what veterans need to know about Medicare options from private companies that contract with Medicare:
- Over 90% of our veteran clients choose PPO options with nationwide networks (Veterans Advantage Financial internal data)
- These options work alongside VA and TRICARE benefits. They don’t interfere
- Options vary significantly by county, so what’s available depends on where you live
- Annual reviews are critical because available options change every year
My father, Wallace Duncan, an 81-year-old Vietnam-era veteran, uses a Medicare option that works well with his VA benefits. Every veteran’s situation is different, which is why working with specialists who understand military benefits matters.
Learn more about how these options work with military benefits in our Veterans Medicare FAQ.
Mistake #4: Delaying Medicare While Relying Solely on VA Care
This dangerous assumption (“I have VA coverage, so I don’t need Medicare”) leads to lifetime penalties and coverage gaps.
Critical Facts Veterans Must Know
- VA coverage is NOT creditable coverage for Medicare Part B (Source: Medicare.gov)
- Every year you delay Part B enrollment costs you a 10% lifetime penalty
- The penalty is based on the current premium, so it grows every year
- A 3-year delay means paying 30% extra for life
The VA’s Own Warning: “We recommend you enroll in Medicare” and “VA health care funding could change in the future” (Source: VA.gov)
The VA itself tells veterans to enroll in Medicare at 65, regardless of VA coverage.
The Real Cost
A 3-year delay doesn’t just cost you $64 extra per month today. As Medicare premiums rise, that 30% penalty grows. Over 20 years, based on average premium increases of 5% annually, you could pay an additional $28,000 or more in unnecessary penalties.
Need help enrolling? Download Form SSA-40B to enroll in Part B and protect yourself from penalties.
Mistake #5: Not Reviewing Options Annually During Open Enrollment
Many veterans enroll in Medicare and never look at their options again. This “set it and forget it” approach means missing out on new benefits that can provide significant cost savings.
What Changes Each Year
- Available options: New options enter your county that may better fit your needs
- Coverage benefits: Existing options can add or improve coverage features
- Provider networks: Your doctors may join new networks, giving you more choices
- Cost structures: The total cost of your Medicare coverage can vary significantly between options
Real Impact: A Marine veteran stayed with the same option for five years without reviewing alternatives. When he finally contacted us, we found options in his area that reduced his out-of-pocket costs substantially. Annual reviews ensure you’re always using the option that best fits your current situation.
How to Avoid These Costly Medicare Mistakes
The difference between veterans who avoid these mistakes and those who don’t? Working with Medicare specialists who understand military benefits.
Non-veteran-specialized Medicare advisors mean well, but they often don’t understand:
- How TRICARE for Life eliminates the need for Medigap
- Which Medicare options offer the most strategic benefits to maximize coverage with the lowest costs
- How to properly appeal IRMAA surcharges using Form SSA-44
- Why VA coverage doesn’t protect from Part B penalties
- How to maximize benefits during annual reviews
Your Next Steps
Don’t let these mistakes drain your retirement savings. Whether you’re approaching 65 or already enrolled in Medicare, now is the time to ensure you’re maximizing every benefit you’ve earned through your service.
Have more questions? Check out our comprehensive Veterans Medicare FAQ for detailed answers to the most common Medicare questions veterans ask.
At Veterans Advantage Financial™, we work exclusively with veterans. We understand how Medicare integrates with your VA benefits and TRICARE for Life. We’ve helped thousands of veterans avoid these costly mistakes and find the options that work best for their unique situations.
Don’t just take my word for it. See what other veterans are saying in our client testimonials.
Ready to protect your benefits and your wallet?
Call us at 888-960-8387 (VETS) for a free Medicare mistake review. We’ll identify any mistakes in your current coverage and show you exactly how to maximize your benefits.
Medicare rules enable us to provide our services completely free to veterans. You pay the same price whether you work with us or go directly to insurance companies. The difference? Expert guidance that understands what We Speak Veteran™ really means.
Christopher Duncan is the founder of Veterans Advantage Financial™ and holds credentials as a Certified Medicare Insurance Planner™ and Retirement Income Certified Professional® with nearly 20 years of Medicare experience. He works exclusively with veterans to maximize their Medicare benefits while avoiding costly mistakes. Connect with us on YouTube or Facebook for more veteran-specific Medicare guidance.