Are you in the best available Medicare plan for your situation? For many Medicare beneficiaries, the answer is no — and that can be a costly mistake.
A recent study by the Kaiser Family Foundation found that 71% of Medicare beneficiaries don’t research their plan options when Annual Open Enrollment comes around. That can be a costly mistake, since Medicare Advantage plans can make changes every year, including:
- Deductible amounts
- Coinsurance
- Maximum out-of-pocket costs
- Premiums
- Contracts with hospitals and doctor networks
- Which prescription drugs the insurer will cover.
Prescription drug plans are particularly prone to making changes in their formulary of covered drugs, rules under which the plans provide coverage and cost structure. The Kaiser Family Foundation found that only a small fraction of Medicare beneficiaries are enrolled in the lowest-cost Part D plan available to them, based on the specific drugs they take.
Meanwhile, your own medical situation may change over time. Even if your plan hasn’t changed, your coverage needs may have. Exploring your Medicare Advantage or Medicare Supplement options annually during Open Enrollment may help you avoid unnecessary out-of-pocket costs and make it more affordable for you to seek treatment from the doctor or care facility of your choice.
If you’ve enrolled in a Medicare Supplement (Medigap) plan, along with Original Medicare, you don’t need to worry as much about unexpected changes to your plan since you can essentially see any doctor that accepts Medicare (if they are accepting new patients). But as your personal medical situation changes, it still may be worthwhile to explore your options in Medicare Advantage each year as well as your Part D prescription drug plan choices.
How to make changes
The Annual Open Enrollment period runs from Oct. 15 through Dec. 7. During this period, you can make changes to your Medicare Advantage enrollment.
During this period, you are entitled to make the following changes:
- You can move from Original Medicare to a Medicare Advantage plan, or you can opt out of a Medicare Advantage plan and move to Original Medicare.
- You can enroll in Medicare Part D (prescription drug coverage). A late enrollment penalty may apply if you did not enroll when first eligible.
- You can switch from one Medicare Advantage plan to another.
- You can switch from one Medicare Part D prescription drug coverage plan to another.
- You can apply for a Medicare Supplement plan (know that if you don’t sign up when you first become eligible for Medicare, the plan may review your health status and reject you.
All changes will be effective as of Jan. 1.
Research from the Kaiser Family Foundation finds that many enrollees don’t review their choices annually because they find the process daunting. We can help you identify recent plan changes, compare your different plan options, and enable you to make an informed decision about which Medicare Advantage or Medigap plan may be best for you.
If you decide to make a change to your Medicare coverage, there is no cost for doing so. You simply pay the monthly premiums for your new plan, beginning Jan. 1.
