7 Tips for Medicare Annual Enrollment Period
7 Tips for Medicare Annual Enrollment Period (AEP)
Everyone has their own priorities. But when it comes to Medicare, I believe that people should try to get the coverage they want at the lowest possible cost. Now this doesn’t mean buying the cheapest.
Quality is important. After all, it’s your healthcare coverage we are talking about.
But I see many people who are paying significantly more but not getting anything extra for that extra premium. That can be very frustrating because it feels like a waste. Don’t get me wrong, I will happily pay more money for higher quality, because it’s good value.
The Annual Enrollment Period for Medicare runs from October 15th to December 7th.
This is the time when you can change your prescription drug or Medicare Advantage plan. Any changes made during this time will be effective January 1st. But if you don’t take action before December 7th then you will be stuck in the same plan you have now.
1. Know What Changes You Can Make
The Annual Enrollment Period (AEP) is a good time to make changes but it’s helpful to know which changes you can make.
Medicare Supplements/Medigap Plans
Medicare Supplements can be changed during this time of the year just like any other part of the year. But they do require you to be approved by your new company’s underwriting team before your coverage can start. For this reason, you shouldn’t cancel your current coverage until your new coverage has been approved.
Medicare Advantage/Medicare Part C
Medicare Advantage plans can be changed during AEP. This is the recommended time to review your Advantage plan and make any changes because you don’t need a special circumstance to make a change.
Anyone can change to a Medicare Advantage plan during this time. Advantage plans only have one health question which is about End Stage Renal Disease.
Prescription Drug Plans/Medicare Part D
Prescription drug plans can be changed during AEP just like Advantage plans. This is the recommended time to review your drug plan because you are free to make changes without needing any extra special circumstances.
2. Review Annual Notice of Change
You may have signed up for the lowest cost plan available at the time you signed up. But that doesn’t mean it will be the lowest cost plan next year. Your premium can change every calendar year so it’s smart to review your renewal notice and see how much your monthly premium changed.
Some plans may stay the same or only go up a few dollars. Others will go up by quite a bit. And some plans may go away completely.
You may also receive a renewal notice from a company you didn’t sign up with.
Sometimes companies will sell a part of their business to another company including their members. So you suddenly have a plan from a company you didn’t choose. These are all good things to know so you have the coverage you want moving forward.
3. Consider Total Cost
Lowest premium doesn’t always mean lowest cost.
The lowest total cost is what matters to many people and probably you too. If your premium is $5 lower but you have a deductible of $200 then that may not help lower your total costs, will it?
So which plan has a combination of low premiums, low prescription drug costs, and access to the pharmacies you want to use?
4. Comparison Shopping for Medicare Part D
Plans can change each year which is outlined in your Annual Notice of Change. (Tip #2)
But did you know that new plans can become available each year?
So even if you signed up for a plan in September and compared all of your options, you would not have been able to compare your options for the following year. Which means plans that were the lowest total cost for you may not be the plan that has the lowest total cost for next year.
For those reasons, the Annual Enrollment Period is a great time to compare your current plan with what’s available now.
5. Double Check Drug Formulary
A formulary is a list of prescription medications that each company will cover on their drug plan. It includes the drugs that are covered as well as how they are covered.
This is important because formularies can change from year to year. Which means that some medications that were covered this year may not be covered next year.
And some medications may have been considered a tier 2 before but are now a tier 3 which means your copay costs go up whenever you fill that prescription.
6. Use Free Tools Available to You
Medicare.gov
Medicare.gov is a tool you can use to compare Part D plans available in your county. If you know how to use this tool it can be very helpful when it is accurate.
It does have a learning curve to get the most benefit using it, which some people may find frustrating. But once you have a good grasp of how it works, it can be a nice way for you to compare plans from home.
Independent Insurance Agent
Independent insurance agents should represent many different companies. This lets you shop the market without having someone try to “sell” you on a specific company. This can be easier than Medicare.gov because you are speaking with someone who uses that resource and others every single day to find the lowest total costs for Part D plans.
7. Review Mail Order Savings Opportunities
Many companies are offering significant savings for switching to a 90 day mail order supply using their preferred mail order pharmacy. This can be a substantial savings for you financially and also save you a trip to the pharmacy.
If your goal is lowest total cost then using a mail order pharmacy can be a great benefit for you.
Now what?
So what’s my ultimate goal here? To help you find the coverage you want, at the lowest possible total cost.
For a FREE, no obligation review please call me directly at 608-571-4461. We can review your medications and make sure you are getting them covered at the lowest possible cost to you.
We can also compare Medicare Advantage plans to make sure you have access to the doctors and hospitals you prefer. Just because they were in network this year does not mean they will be next year as these people in Houston are finding out.
Mike Lovell
608-571-4461
Mike@askMedicareMike.com