Understanding your annual notice of change for medicare advantage

As a Medicare Advantage plan member, you'll receive an important document called the Annual Notice of Change (ANOC) each fall, usually by September 30. This notice details any adjustments to your plan's costs, coverage, or service area for the upcoming calendar year. Taking the time to understand your ANOC can help you make informed decisions during the Annual Enrollment Period (AEP), which runs from October 15 to December 7.

What to look for in your ANOC

The ANOC outlines all the changes your plan intends to make for the next year. It's not always simple to read, but paying attention to a few key areas can make a big difference. First, check your monthly premium. Even if you haven't paid one before, your plan might introduce one. Next, look at your deductibles, co-payments, and co-insurance. These are the amounts you pay when you receive services. They can change significantly year to year, impacting your out-of-pocket costs. Lastly, review the benefits section. Does your plan still cover the services you rely on, such as dental, vision, or hearing aids? Are there any new limitations or changes to existing benefits?

Reviewing your plan's formulary

For many, prescription drug coverage is a primary concern. Your ANOC will also tell you about changes to your plan's formulary, which is the list of covered medications. If you take regular prescriptions, compare your current medication list against the formulary for the upcoming year. Your plan might add new drugs, remove some, or change the tier your medication is on, which could affect your co-pay. If a drug you rely on will no longer be covered or will cost more, this is an important signal to explore other options.

How to use your ANOC during annual enrollment

Once you've reviewed your ANOC thoroughly, you're in a good position to decide if your current Medicare Advantage plan still aligns with your health and financial needs. If you're comfortable with the changes, you don't need to do anything; your plan will automatically renew. However, if the changes mean your plan no longer suits you, the Annual Enrollment Period (AEP) is your opportunity to switch plans. You can join a different Medicare Advantage Plan, switch to Original Medicare, or add a Part D prescription drug plan if you move to Original Medicare. Consider your health needs, budget, and the doctors and hospitals you use when evaluating your options. Medicare.gov and your State Health Insurance Assistance Program (SHIP) can be valuable resources for comparing plans.