When to review your Medicare choices: An annual check-up for your coverage

Choosing Medicare coverage can feel like a one-time decision, but it's more like an ongoing relationship. Just as you might visit your doctor for an annual check-up, it’s wise to give your Medicare plan an annual review. This small habit can prevent unexpected costs and ensure you’re getting the most out of your benefits.

The Medicare Annual Enrollment Period (AEP)

Every year, from October 15 to December 7, Medicare offers a dedicated period called the Annual Enrollment Period (AEP). During this time, you have the opportunity to make changes to your Medicare coverage that will take effect on January 1 of the following year. This is your chance to:

• Switch from Original Medicare to a Medicare Advantage plan.
• Switch from a Medicare Advantage plan back to Original Medicare.
• Change from one Medicare Advantage plan to another.
• Join a Medicare Part D prescription drug plan.
• Switch from one Medicare Part D plan to another.
• Drop your Medicare Part D prescription drug plan.

If you're happy with your current coverage and it still meets your needs, you don't have to do anything. Your current plan will generally renew automatically. However, even if you’re satisfied, a quick check can often uncover better options or confirm you're on the right track.

Why an annual review matters

Many people stick with the same Medicare plan year after year without realizing how much things can change. Here's why reviewing your options during AEP is so important:

• Plan Changes: Insurance companies can alter their plans annually. This includes changes to premiums, deductibles, co-pays, covered services, and prescription drug formularies (the list of covered medications). A plan that was perfect last year might not be as good for you next year.
• Health Changes: Your health needs can evolve. Perhaps you’ve developed a new condition, need different specialists, or started a new medication. Your current plan's network or drug coverage might no longer be ideal for your changing circumstances.
• Financial Changes: Your budget might be different. A plan with a higher premium but lower out-of-pocket costs might make more sense, or vice-versa. There might be new plans available that offer better value for your specific needs.
• New Options: New Medicare plans become available each year. These might offer benefits or features that were not an option when you first enrolled.

How to approach your annual check-up

Think of this as a three-step process:

1. Gather Information: Around September, your current plan will send you an "Annual Notice of Change" (ANOC). Read this document carefully. It outlines all the changes coming to your plan for the next year. Also, make a list of all your current medications (including dosage and frequency) and any doctors or specialists you wish to continue seeing.
2. Evaluate Your Needs: Consider any health changes, new prescriptions, or financial shifts from the past year. Are you happy with your current doctors? Do you anticipate needing new services? Does your budget allow for higher or lower premiums?
3. Compare and Decide: Use the official Medicare.gov plan finder tool to compare available plans in your area. You can input your medications and preferred pharmacies to see how different Part D plans will cover your drugs and estimate your out-of-pocket costs. For Medicare Advantage plans, you can check if your doctors are in network and compare benefits like vision, dental, or fitness programs.

Making an informed decision during the Annual Enrollment Period can save you money, ensure access to your preferred doctors, and provide peace of mind that your Medicare coverage truly supports your health and well-being.