Payment on behalf of: medicareu.com

Medicare insurance advertising is everywhere. We all see it on daytime television, radio, online and, if you’re a senior, you’re probably getting calls all the time. Every fall we see references to the Annual Enrollment Period (AEP) as the ads ramp up more than any other time of the year. What makes AEP so special and does it even matter for most people? Here, I’ll talk about why reviewing your Medicare Advantage or Medicare Part D plan during this time is important and what you should do.

What is the Annual Enrollment Period?

Medicare’s AEP is from October 15 through December 7. During this time period you can make changes to  your Medicare Advantage (Medicare Part C)  or Medicare Part D plans. Generally you will have one or the other, though in rare circumstances you may have both. Any chances you make during this time period will start on January 1st of the following year.

AEP is the time period when you can make any change to Medicare Advantage or Medicare Part D plans that you would like. You can choose to enroll into a Medicare Advantage plan, Medicare Part D plan, or choose to disenroll from either option. 

Many also choose to make changes to their Medigap plan or any other policies such as dental, vision or hearing plans. These plans have year round enrollment for changes but it is often a good time to shop them while you are reviewing your drug coverage. If you can avoid changes to these plans during AEP, do so, because many companies are swamped with new applications, creating delays in processing.

Those who are new to Medicare during this time can get very confused. They have their own enrollment period completely independent of the AEP timeline. You have up to 3 months after your Medicare start date to make choices for our Medicare and can ignore this time period.

What do you need to do during the AEP?

Our first recommendation is to plan early. Even though AEP is almost two and a half months long, many agencies’ schedules fill quickly and you don’t want to miss out on any opportunities to save money or ensure no changes affect your current medications or doctors. 

When planning to meet with a broker to review your options, consider what you do and don’t like about your current plan. Confirm your medications for next year too. Many plans change their formulary (covered list of medications) slightly each year. Do not assume that your medications will all be covered the same next year as well. Lastly, consider if you have any new diagnoses or scheduled procedures that may affect your costs next year.  

You may not be sure what your current plan covers, exactly. Every year you will receive an Evidence of Coverage (EOC). The EOC will be mailed to you by September 30 each year. You will also receive another extremely important document called the Annual Notice of Change (ANOC). The ANOC describes how your current plan is changing, including changes to the premium, deductible or individual copays and benefits.

Please take the time to review this document (or have a broker review it with you). Medicare Part C and Part D plans often make changes each year. You may be completely happy with your plan today, but that could change by next year. The ANOC will make you aware of those changes.

Whatever you do, don’t ignore AEP. We know Thanksgiving falls during this time, and people get busy with Christmas plans right after that. Medicare will not allow any changes to be made to your Part C or D plan after December 7, so we urge you to plan ahead. 

One last thing to be aware of. You will most certainly be getting a lot of calls during AEP. Call centers make thousands of calls each day and are completely unaware of your unique circumstances. We do not recommend making changes or enrolling with someone over the phone who you do not know or can’t verify. Many of these call centers will only compare benefits without considering your doctors, medications, or other specifics that are unique to you. If something sounds interesting to you we recommend you ask your local broker to discuss it with you. 

Ask a friend, family member, or do your research online with Google, Trustpilot, Better Business Bureau, or other outlets you trust. There are plenty of local brokers and agents that know your area, and will put in the time to set you up right.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.