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Americans tend to overspend during the holiday shopping season and this year will be no different according to forecasts.
With interest rates near an all-time high, leaning on credit cards, or even buy now, pay later, to purchase gifts will come at a high cost if there are missed or late payments.

Americans often splurge on gifts during the holidays.
This year, holiday spending between Nov. 1 and Dec. 31 is expected to increase to a record total of $979.5 billion to $989 billion, according to the National Retail Federation.

Even as credit card debt tops $1.14 trillion, holiday shoppers expect to spend, on average, $1,778, up 8% compared to last year, Deloitte’s holiday retail survey found.
Meanwhile, 28% of holiday shoppers still have not paid off the gifts they purchased for their loved ones last year, according to another holiday spending report by NerdWallet. 

How shoppers pay for holiday gifts

Heading into the peak holiday shopping season, 74% of shoppers plan to use credit cards to make their purchases, NerdWallet found.
Another 28% will tap into savings to buy holiday gifts and 16% will lean on buy now, pay later services. NerdWallet polled more than 1,700 adults in September.  
More from Personal Finance:Could buy now, pay later loans affect your credit score? Americans can’t stop ‘spaving’ — how to avoid this financial trapDon’t believe these money misconceptions

Buy now, pay later is now one of the fastest-growing categories in consumer finance and is only expected to become more popular in the months ahead, according to the most recent data from Adobe. Adobe forecasts buy now, pay later spending will peak on Cyber Monday with a new single-day record of $993 million.
However, buy now, pay later loans can be especially hard to track, making it easier for more consumers to get in over their heads, some experts have cautioned, even more than credit cards, which are simpler to account for despite sky-high interest rates.

The problem with credit cards and buy now, pay later

Credit cards are one of the most-expensive ways to borrow money. The average credit card charges more than 20% — near an all-time high.
Alternatively, the option to pay in installments can make financial sense, especially at 0%. 
Yet, buy now, pay later loans “are just another form of credit, disguised as something for free,” said Howard Dvorkin, a certified public accountant and the chairman of Debt.com.
The more buy now, pay later accounts open at once, the more prone consumers become to overspending, missed or late payments and poor credit history, other research shows.
If a consumer misses a payment, there could be late fees, deferred interest or other penalties, depending on the lender. In some cases, those interest rates can be as high as 30%, rivaling the highest credit card charges. 
“This is just another way for financers to put their hands in the pocket of consumers,” Dvorkin said. “It’s a trojan horse.”
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Traders work on the floor of the New York Stock Exchange during morning trading in New York City. 
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Stocks @ Night is a daily newsletter delivered after hours, giving you a first look at tomorrow and last look at today. Sign up for free to receive it directly in your inbox.
Here’s what CNBC TV’s producers were watching as the S&P 500 and Dow Jones Industrial Average retreated from recent highs, and what’s on the radar for the next session.

Apple

Despite concerns about the new iPhone, Apple hit a new all-time high on Tuesday.
The stock ended the session up more than 1%, closing at $233.85. It hit a high of $237.49 before curtailing its gains for the day.
Apple is up 5% in a month and 35% in six months.

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Apple shares over the past six months

DJT

Trading in Trump Media & Technology Group was wild on Tuesday.
The stock finished down nearly 10%. It is down nearly 4% after hours.
Check out the volume: 89 million shares. That is almost triple the ten-day average.
The stock is up 68% in October. 

Regional banks

The big banks are just about done reporting. Now, the regionals move in.
Citizens Financial, based in Providence, Rhode Island, reports before the bell. The stock has gained 12.5% in the past three months, and it’s up 5.5% in a week. The stock hit a new high on Tuesday.
First Horizon, headquartered in Memphis, Tennessee, will also report before the bell. First Horizon is down 1% over the past three months. The stock is up 8% in a week and 4.3% from the July high.
The SPDR S&P Regional Banking ETF (KRE) hit a new high on Tuesday. The ETF is up 6.7% in a week, and it has gained up 10.3% in three months.
Wells Fargo, by the way, is up 10% in a week. In a rare interview on “Mad Money” Tuesday night, CEO Charles Scharf, who’s been leading a buyback charge, said, “We invest in much as we can inside the company and that’s our first priority.”
Goldman Sachs is up 5.2% in week.
Citigroup is down 4.7% in two days.
JPMorgan Chase is up 5.5% in the past week.
Bank of America is up 5.5% in a week, as well.
Morgan Stanley is up 4.4% in a week. The bank reports on Wednesday morning before the bell, and CEO Ted Pick will be live on CNBC TV in the 10 a.m. hour, Eastern.

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Wells Fargo shares in the past week 

The chips

CSX

The railroad reports after the bell Wednesday.
CSX is up 2.6% in the past three months.
It is 11.5% from the February high, but it’s up 4.8% in a week.
Canadian National Railway is 14% from the March high.
Canadian Pacific is 11% from the March high.
Union Pacific is 5% from the February high.
Norfolk Southern is 3.5% from the March high. Shares are up 4.6% in a week. More

Buying a home is often the biggest financial decision you’ll ever make.
Some top-ranked advisors offer a step-by-step guide to buying a home.
Here’s what you need to know.

Morsa Images | Getty

Buying a home is often the biggest financial decision you’ll ever make.
It’s not just about choosing a place to live; it’s about making a long-term investment that will impact your financial future for years to come.

Therefore, if you are looking to buy a home, there are certain steps you should take to prepare for the purchase, according to several advisors ranked in CNBC’s 2024 Financial Advisor 100 List.
“Number one is doing that initial homework and financial planning,” said Brian Brady, vice president at Obermeyer Wood Investment Counsel in Aspen, Colorado. The firm ranks No. 23 on the 2024 CNBC FA 100 list. 
Most important, it has to be a “smart financial decision” that makes the most sense for you, explained Stephen Cohn, co-founder and co-president of Sage Financial Group in West Conshohocken, Pennsylvania. The firm ranks No. 61 on the 2024 CNBC FA 100 list.

More from FA 100:

Here’s a look at more coverage of CNBC’s FA 100 list of top financial advisory firms for 2024:

“I run into a lot of first-time homebuyers, friends, kids, acquaintances. They fall in love with the house, and it may not make sense for them financially,” said Ron Brock, managing director and chief financial officer at Sheaff Brock Investment Advisors in Indianapolis, Indiana. The firm ranks No. 7 on the 2024 CNBC FA 100 list.
He tells them: “Just be smart. Don’t be house poor.”

Here are some key steps to consider if you plan to buy a home:

1. Have a strong credit score

Make sure you have strong credit, said Shaun Williams, private wealth advisor and partner at Paragon Capital Management in Denver, Colorado. The firm ranks No. 38 on the 2024 CNBC FA 100 list. 
“The higher the credit score, the better the terms you’re going to get on the loan, and the lower the interest rate will be,” said Ryan D. Dennehy, a financial advisor at California Financial Advisors in San Ramon, California. The firm ranks No. 13 on the 2024 CNBC FA 100 list. 
For example, a FICO score ranging 760 to 850 might qualify for a 6.226% annual percentage rate, according to Bankate.com. That can translate to a $1,842 monthly payment, Bankrate found.
On the other hand, a FICO score of 620-639 might get a 7.815% APR, roughly amounting to a $2,163 monthly mortgage payment, per Bankrate examples. They are based on national averages for a 30-year fixed mortgage loan of $300,000.
You can start the process by paying down any existing debts that you have on time and in full, and avoid new loans as you get closer to buying a home, experts say.

2. Start saving for the down payment

While a 20% down payment is not required to buy a house, buyers try to put more money upfront to avoid mortgage insurance costs and potentially lower monthly payments.
In the third quarter of the year, the average down payment was 14.5%, and a median of $30,300, Realtor.com told CNBC.
In order to start saving for a down payment, you need to figure out your cash flow, or how much money is coming in versus going out every month, said Steven LaRosa, director and senior portfolio manager at Edgemoor Investment Advisors based in Bethesda, Maryland. The firm ranks No. 14 on the 2024 CNBC FA 100 list.
Also, try to maximize how much money you can save or put away towards the down payment, said LaRosa.

3. Boost your emergency savings

It’s not just the down payment that needs to be built up, said Williams.
“You should have six months of your spending needs, including the house spending needs, in an emergency fund,” he said.
You don’t want to be in a situation where you use up all of your savings for the upfront costs of buying a house and end up with no cash left.
Home emergency spending was $1,667 across 1.5 projects per household in 2023, according to a report by Angi, an online marketplace for home improvement professionals.

3. Think about the lifestyle you want

Ask yourself what kind of lifestyle you look forward to, said Brady.
“Are you looking for a condo? Do you want a single-family home?” he said. 
Then you can focus on factors like location and price, said Brady. 
Meanwhile, some of the additional costs that come with owning a house are driven by where you live, like property taxes, utility and insurance costs, he said. 
In some areas, “it’s next to impossible” to get home insurance, said Brady. “And if you can [get home insurance] you’re paying quite a bit.”
Nearly three-quarters, or 70.3%, of Florida homeowners and 51% of California homeowners say they or the area they live in has been affected by rising home insurance costs or changes in coverage in the past year, according to Redfin, an online real estate brokerage firm.

5. Factor in other homeownership costs

Owning a home goes far beyond the monthly mortgage payment.
You need to factor in additional costs, experts say. 
To that point, the costs of homeownership adds up to an average $18,118 annually, or $1,510 a month, according to a report by Bankrate.com. The national figure includes the average costs of property taxes, homeowner’s insurance, and electricity, internet and cable bills. Maintenance was estimated at 2% a year of the home value.
“Those are very significant additions that sometimes people glance over and don’t put enough weight on,” said Cohn.
As such costs are unlikely to decline as time goes on, it’s important to have an emergency fund for homeownership costs, experts say.

6. How long you plan to stay in the house

“We like to use a five to seven year minimum,” said Cohn. The longer you’re in a house, the more likely the fixed costs will amortize, or pay off, over time, he said. 
Additionally, in the early years of the loan, you’re mostly paying the interest rate, and not the loan itself, experts say. 
“You’re not accumulating any equity from putting money into the mortgage in the first 5 to 7 years,” said Cohn.
“If you start looking at how much goes to principal and how much goes to interest in the first several years, it’s probably all interest,” said Brock. More

The tax extension deadline is Oct.15, but some taxpayers in federally declared disaster areas have more time to file.
For disasters after April 15, there is no extension for payments, and penalties and interest have been accruing.
If you still can’t pay your taxes, you have a few options, tax professionals say.

Urbazon | E+ | Getty Images

The tax extension deadline has arrived and there are options if you still can’t pay your balance, tax experts say.
About 19 million U.S. taxpayers filed for an extension by the April 15 tax deadline, which bumped the filing due date to Oct. 15. But taxpayers affected by natural disasters may have even more time, with new deadlines ranging between Nov. 1 and as late as May 1, 2025, depending on location.

However, for federally declared disasters after April 15, filers were not granted more time to pay their tax bill. Penalties and interest on unpaid balances started accruing after the April 15 deadline.
More from Personal Finance:Some hurricane victims can get a tax break for lossesMedicare open enrollment lets retirees shop for new health-care coverageTaxpayers in 25 states get extra time to file, but not to pay
Many taxpayers wrongly assume that a tax extension provides more time to pay, experts say.
“That’s a surprise to a lot of people,” said Josh Youngblood, an enrolled agent and owner of The Youngblood Group, a Dallas-based tax firm. 
If you missed the tax deadline, the late payment penalty is 0.5% of your unpaid balance per month or partial month, capped at 25%. You will also incur interest on unpaid taxes.

By comparison, the failure-to-file penalty is 5% of unpaid taxes per month or partial month, up to 25%.

You have ‘various payment options’

The IRS has options if you can’t pay your taxes, “but you have to be current on your filing requirement,” said Tom O’Saben, an enrolled agent and director of tax content and government relations at the National Association of Tax Professionals.
After filing, there are “various payment options” online, and many filers will receive an immediate acceptance or rejection of payment plan requests without calling the IRS, according to the agency.
“If you owe less than $50,000, establishing a payment plan with the IRS is almost going to be automatic,” O’Saben said.

IRS online payment plans, or “installment agreements,” include:

Short-term payment plan: This may be an option if you owe less than $100,000, including tax, penalties and interest. You have up to 180 days to pay in full.
Long-term payment plan: This may be available if your balance is less than $50,000, including tax, penalties and interest. You must pay monthly, and you have up to 72 months to pay off the balance.

Although the late-payment penalty and interest will continue to accrue, an IRS payment plan could cut your late-payment fee in half while the agreement is in effect, according to the IRS.
One downside of IRS payment plans is future tax refunds could be used to offset your unpaid balance, O’Saben said.

‘Don’t ignore it because it won’t go away’

If you have unpaid taxes, you can expect notices from the IRS, and communication with the agency is key, experts say.
“Don’t ignore it because it won’t go away,” Youngblood said. “I’ve had clients come in, and they have a whole pile of unopened IRS letters.” 
“The IRS is not as bad as they think,” he added. “They actually want to work with people.”

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As enrollment numbers dwindle, a growing number of institutions struggle to stay afloat.
Smaller, less selective schools have been the hardest hit, while the country’s most elite colleges and universities continue to thrive.

Many colleges are under financial pressure, and the cracks are starting to show.
At least 20 colleges closed in 2024, and more are set to shut down after the current academic year, according to the latest tally by Implan, an economic software and analysis company.

Altogether, more than 40 colleges have closed since 2020, according to a separate report by Best Colleges.
More from Personal Finance:Teens are losing faith in collegeThese are the top 10 highest-paying college majorsThe sticker price at some colleges is now nearly $100,000 a year
As the sticker price at some private colleges nears six figures a year, students have increasingly opted for less expensive public schools or alternatives to a four-year degree altogether, such as trade programs or apprenticeships.
At the same time, the population of college-age students is also shrinking, a trend referred to as the “enrollment cliff.”
Experts have continuously warned that ongoing problems with the new Free Application for Federal Student Aid form have resulted in fewer students applying for financial aid, which could also contribute to declining enrollment.

That has left some colleges and universities in a bind, especially “small private — often liberal arts — schools,” said Candi Clouse, a vice president at Implan.
Meanwhile, the country’s most elite institutions are thriving.

College applications jump

Coming out of the pandemic, a small group of universities, including many in the Ivy League, experienced a record-breaking increase in applications, reports show.
Last year, Yale University, for example, accepted 3.73% of the record-high 57,465 students who applied to the Class of 2028.
Overall, the number of college applicants jumped 11% in the 2023-24 school year, even as enrollment flatlined, the latest data from the Common Application found, suggesting more students are applying to the same schools.

If you are not a big brand, you have a real problem on your hands.

Hafeez Lakhani
founder and president of Lakhani Coaching

“There’s been a paradox in higher education for five-plus years,” said Hafeez Lakhani, founder and president of Lakhani Coaching in New York.
“At the very same time you have an enrollment crisis building, you have record application volume at the most selective schools,” he said. “The consensus is, it’s only worth going to college if it’s a life-changing college.”
Meanwhile, private colleges that are less prestigious but equally expensive are struggling to attract applicants, he added.
For a majority of students, “the costs are nowhere near reasonable,” Lakhani said.
“If you are not a big brand, you have a real problem on your hands,” he said.

College is becoming a path for only those with the means to pay for it, other reports show. 
Children from families in the top 1% are more than twice as likely to attend a so-called Ivy Plus school as those from middle-class families with comparable SAT or ACT scores, according to the National Bureau of Economic Research. 
Though opinions on which schools should be considered Ivy Plus vary, the group generally includes the eight private colleges that comprise the Ivy League — Brown, Columbia, Cornell, Dartmouth, Harvard, University of Pennsylvania, Princeton and Yale — plus the University of Chicago, Duke, Massachusetts Institute of Technology, and Stanford.
Most Americans still agree a college education is worthwhile when it comes to career goals and advancement. However, only half believe the economic benefits outweigh the costs, according to a separate report by Public Agenda, USA Today and Hidden Common Ground.
The rising cost of college and ballooning student loan balances have played a big role in changing views about the higher education system, which many think is rigged to benefit the wealthy, the report found. 
And costs are still rising.
Tuition and fees plus room and board for a four-year private college averaged $56,190 in the 2023-24 school year. At four-year, in-state public colleges, it was $24,030, according to the College Board, which tracks trends in college pricing and student aid.
Already, the majority of applicants hail from the wealthiest zip codes, the Common Application found.
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Victims of Hurricanes Helene and Milton could get a tax deduction for losses.
However, the tax break is generally only available for damage in federally declared disaster areas through 2025.
Experts cover who qualifies for the deduction and how to calculate it.

David Hester inspects damages of his house after Hurricane Helene made landfall in Horseshoe Beach, Florida, on September 28, 2024. 
Chandan Khanna | Afp | Getty Images

After a natural disaster, some victims may be eligible for tax relief — but qualifying can be tricky, tax experts say.
In late September, Hurricane Helene ravaged parts of Florida, Georgia, North Carolina, South Carolina, Virginia and Tennessee. Two weeks later, Hurricane Milton brought high winds, tornados and flooding through the middle of Florida.

Impacting both insured and uninsured homes, the losses from both storms could amount to tens of billions of dollars.
Certain victims can amend 2023 returns to claim a tax break for recent losses, known as the “casualty loss tax deduction,” according to the IRS. But the calculation is complicated, experts say.
More from Personal Finance:This insurance provision can help with living costs after a natural disasterTaxpayers in 25 states get extra time to file, but not to pay, 2023 federal taxesHow to file a homeowners insurance claim after a natural disaster
Here’s a breakdown of who qualifies for the casualty loss deduction and how the tax break works.

How to calculate the casualty loss deduction

Before 2018, taxpayers who itemize tax breaks could claim the casualty loss deduction for more types of personal losses, such as home damage from a fire or storm, explained certified public accountant and attorney Mark Luscombe, principal federal tax analyst for Wolters Kluwer Tax & Accounting.

But the Tax Cuts and Jobs Act of 2017 temporarily restricted eligibility. Only losses in federally declared disaster areas will qualify through 2025, he explained.

The casualty loss deduction calculation starts with your home’s “adjusted basis,” or original purchase price plus the cost of certain improvements, explained Beth Brennan, vice chair for the disaster relief tax task force at the American Institute of Certified Public Accountants.
You also need to know how much the fair market value declined due to the disaster, she said.

How to calculate the casualty loss deduction
1. Use the smaller of your adjusted basis or pre-disaster fair market value
2. Subtract insurance proceeds and other relief payments
3. Subtract $100 and 10% of adjusted gross income

“In practice, you don’t always have an appraisal of your property right before a disaster hits,” so taxpayers can use “safe harbor methods” outlined by the IRS, Brennan said. The IRS safe harbors generally don’t rely on appraisals.
Once you have your home’s pre-disaster fair market value, you compare it to your adjusted basis. You’ll choose the smaller of those two numbers before subtracting insurance proceeds and other relief payments.
The final step of the calculation is subtracting a $100 and 10% of your adjusted gross income, or AGI, which is all earnings minus certain tax breaks. 
“The higher your AGI, the greater the reduction of your loss,” said Luscombe.

Congress approves ‘qualified disaster losses’

In certain cases, “qualified disaster losses” are eligible for special rules, but “that’s driven by Congressional action,” according to Brennan.
When there’s a qualified disaster loss, the $100 rises to $500, there is no 10% AGI limit and victims can add their loss on top of the standard deduction.
That means they can claim the deduction even if they don’t itemize tax breaks, Brennan said. 
However, “we haven’t had any qualified disasters, as designated as such by Congress since late 2020,” Brennan said. 
“AICPA has been actively advocating for permanent uniform tax relief for all victims of disasters since 2021 — for almost four years now — because we have this inconsistent treatment,” she said.  More

Traders work on the floor of the New York Stock Exchange during morning trading in New York City. 
Michael M. Santiago | Getty Images

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Here’s what CNBC TV’s producers were watching as the Dow topped 43,000 for the first time, and what’s on the radar for the next session.

Nvidia

The stock is nearing an all-time high. It’s just 1.9% away from the $140.76 June record. Shares ended Monday’s trading at $138.07.
Nvidia is up nearly 14% in October.

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Nvidia’s performance in 2024

Other chips

The VanEck Semiconductor ETF (SMH) is up 6.5% in October.
It is 7.7% from the July 11 high.
In the last month, Intel is up 19%. The stock is 54% from the December high.
Micron Technology is up about 19% in a month, as well. The stock is 31% from the June high. CEO Sanjay Mehrotra was on “Mad Money” with Jim Cramer Monday night. “AI is all about memory and experiences, and that’s what’s driving the tremendous growth,” he said. “Smart phones and PCs are starting to come up, but momentum is really just starting.”
Nvidia comes next: Shares are up about 16% in a month. It’s followed by Applied Materials, up 13.5% in a month.
Taiwan Semiconductor Manufacturing is up 11.4% in a month. It hit a high on Monday.
At the bottom of the list: Skyworks Solutions is down 3% in the past month, and Qorvo is down nearly 3%. STMicroelectronics is down about 1% in a month.

More big banks report before the bell

Bank of America: The stock is pretty flat over the past three months. It is 6% from the July high. Bank of America is up nearly 5% in a week.
Citigroup: The bank is up 2.3% in three months, and it’s 2.5% from the July high. Citigroup is up 5.5% in a week.
Goldman Sachs: The stock is up nearly 9% in three months, and it hit a new high Monday. It ended the session at $522.75. Goldman Sachs is up 5.7% in a week.
PNC Financial: The stock is up almost 12% over the past three months. PNC hit a new high on Monday, and shares are up 3.5% in a week. 

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Goldman Sachs in the past three months

Also big tomorrow

J.B. Hunt Transport Services

CNBC TV’s Frank Holland will cover the numbers when they come out.
J.B. Hunt is up 5.6% in the past three months, and it’s 20% from the February high.
Holland will also discuss the rest of the transportation industry. He has a nifty story regarding stock performance for the companies in the sector and capacity. He will be naming names, so don’t miss it. 

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J.B. Hunt over the past three months

The election, DJT and bitcoin More

From Oct. 15 through Dec. 7, Medicare enrollees have the ability to switch plans for 2025.
With new changes set to take effect in 2025, that could change how much retirees pay.
Here’s what changes experts say to watch for next year.

Morsa Images | Digitalvision | Getty Images

Medicare open enrollment for 2025 is set to begin on Tuesday.
Beneficiaries have from Oct. 15 until Dec. 7 to evaluate their Medicare coverage options and select new plans for next year.

Experts say it’s an important opportunity retirees should not ignore.
However, just 30% of people on Medicare review their options every year, according to research from KFF, a provider of health policy research.
“Every year, it makes sense to compare coverage options, because people’s needs change from one year to the next, and also plans make changes,” said Tricia Neuman, executive director for the program on Medicare policy at KFF.
“Doing these comparisons can make a big difference in terms of coverage and costs,” she said.
The new year will usher in new changes to Medicare, which means beneficiaries may want to do some careful research during this open enrollment season.

“My best advice would be to start early,” said Ryan Ramsey, associate director of health coverage and benefits at the National Council on Aging.

Changes you can make during open enrollment

During Medicare open enrollment, retirees may select new health plans and prescription drug plans.
They may switch from original Medicare, which is provided by the federal government, to Medicare Advantage plans that are privately managed. They may also switch from Medicare Advantage to Medicare original or change Medicare Advantage plans.
Original Medicare includes Medicare Parts A and B. Medicare Part A covers care provided by hospitals, skilled nursing facilities and hospice, as well as some home health care. Medicare Part B covers doctors’ services, outpatient care, medical supplies and preventive services.
Beneficiaries on original Medicare may choose to add prescription drug coverage by signing up for a Medicare Part D plan, or additional coverage for out-of-pocket costs through Medicare supplement insurance, or Medigap.
Alternatively, beneficiaries may choose a private Medicare Advantage Plan, which provides Medicare Parts A and B, and may also include vision, dental, hearing and prescription drug coverage.

Changes for 2025 that may affect coverage

In 2025, a $2,000 cap on out-of-pocket Medicare Part D costs will go into effect.
The change, which was part of the Inflation Reduction Act of 2022, is “great news” for retirees who have expensive prescription drugs they need to take, said Philip Moeller, author of “Get What’s Yours for Medicare: Maximize Your Coverage, Minimize Your Costs.”
However, insurance companies may try to pass on the higher Medicare Part D and other prescription coverage costs they now face because of those changes, Moeller explained. That may come in the form of higher prescription co-pays, more expensive coverage tiers for certain drugs or dropping coverage of some drugs entirely.
“This means that consumers should be really vigilant in open enrollment,” Moeller said.
Notably, the Biden-Harris administration has moved to protect beneficiaries from large increases by capping the allowable increase in Part D premiums at $35 per month in 2025, KFF’s Neuman said.
Retirees also should be on the lookout for changing Medicare Advantage coverage, Moeller said.
In some cases, private insurers may have cut out plans or moved out of geographic areas that are no longer attractive to their businesses. While retirees may be inclined to seek Medicare Advantage plans for their prescription drug coverage, they should be aware of possible changes those plans could be making that affect the total costs they will pay, Moeller explained.
Individuals who have Medicare Advantage and who want to switch to original Medicare should be aware they may not be able to purchase a Medigap policy if they have a pre-existing condition, Neuman said.
Notably, four states have protections to prevent that — Connecticut, Maine and Massachusetts and New York.
“In other states, it may be more difficult for people to disenroll from a Medicare Advantage plan and find a Medigap policy if they have a serious medical condition or even asthma, diabetes and other conditions,” Neuman said.

How to best shop around

Experts say thorough research is the best way for retirees to gauge the costs they may face on their current plans or by switching coverage.
Individuals can use Medicare.gov to compare plans or contact Medicare by phone at 1-800-MEDICARE.
State Health Insurance Assistance Program, or SHIP, programs are also available in every state and offer free in-depth, non-biased counseling, according to Ramsey.  
Start now, if possible, Ramsey said.
That extra time will allow you to gather your Medicare.gov login, lists of prescription drugs and have plenty of time to review plan comparison information and ask follow-up questions, he said.
Importantly, any coverage changes do not need to be rushed, Moeller said, and you should take ample time to consider your coverage options.
“There’s no reason to rush to judgment,” Moeller said. “Even if you wait until December 7 to elect coverage for 2025 it will take effect the first of January next year.” More