What is the Medicare Annual Election Period
Before you sign up for Medicare, you have to consider what type of services you need before committing to a plan. The choice often boils down to choosing Part A and Part B or Part C (also called Medicare Advantage) and Part D (Medicare prescription drugs). However, this does not mean that you are bound to the policy that you chose forever.
There are circumstances that will make you want to change your Medicare coverage. Fortunately, the federal government offers a yearly window of opportunity for those who want to make the switch to do so easily. This is called the Medicare Annual Election Period (AEP). During this time, you can dis-enroll from, change, or sign up for a plan.
The Medicare Annual Election Period happens only from October 15 to December 7 each year.
*Take note that AEP is different from the Open Enrollment Period, which applies only to Medicare Supplement Plans (Medigap).
What Can You Do During the AEP?
You cannot just make changes to your Medicare coverage anytime you want. This is why it is important that you know the right schedules when you are able to do so. Here’s what you can do during the AEP.
– Switch from Original Medicare Parts A and B to Medicare Advantage
– Switch from Medicare Advantage to Original Medicare Part A and B
– Switch from one Medicare Advantage policy to another (regardless whether they offer drug coverage)
– Sign up for a stand-alone Medicare Part D prescription drug plan
– Switch from one stand-alone Medicare Part D prescription drug plan to another one, and
– Dis-enroll from Medicare prescription drug coverage completely
When you avail of these changes during the October 15 to December 7 AEP, expect the changes to take effect beginning January 1 of the next year.
What to Do During AEP: A Checklist
Because the conditions of Medicare are ever-changing, it is advised that you consider the benefits on a per-year basis. After all, the AEP happens yearly. While you certainly wouldn’t want to keep switching every year, because that would be troublesome and stressful, getting advice from your doctor or qualified Medicare advisors will help you make an informed decision so that you don’t have any issues when the AEP approaches. Here’s a checklist that can help.
- Discuss your current Medicare plan with your doctor.
If you have Original Medigap with a Medigap add-on policy, ask your physician if he or she will continue to take Original Medicare next year. If the answer is yes, then you may continue your current plan, unless you have a major reason to switch.
If you are currently signed up in Medicare Advantage, where the fees can change yearly, there are several things you should consider. Is your doctor still part of the Medicare network and is he or she happy with the service? Is there a possibility of your doctor leaving the network in the next year?
- Pay attention to the Annual Notice of Change, which is sent out yearly.
If you are enrolled in Medicare Advantage or the Part D drug plan, you will receive an Annual Notice of Change in the mail before September 30 of each year. This packet contains information about changes that will be happening to your policy in the coming year. This package will be big, and people often neglect looking at its contents or put it off, until they do and they realize it’s too late to make any changes.
When you receive this envelope, just skim through what’s inside, take note of what is changing and decide if these are minor enough to stay with your current plan, or major enough to want to make a change. If it is the latter, it’s best to contact your Medicare agent right away to discuss your options.
- Know if the AEP dates are still valid.
The October 15 to December 7 AEP window changes from time to time. It certainly was not the same a few years ago, so be sure to always be updated yearly so you don’t miss any schedules. This window is short so be sure to verify if the same is happening this year and mark it on your calendar.
- Review you Prescription Drugs annually.
Have your prescription drugs changed in the past year? If so, you might want to re-evaluate your Part D prescription drug plan and see if it is still the best and most cost-efficient option for you. List them all down along with the frequency and dosage and have them ready for your agent to look over before October.
- Talk to your Medicare agent.
While it’s protocol for your Medicare agent to touch base with you at least once a year, it’s best to make a call in September to make sure that you have everything prepared and all choices are laid out before AEP arrives. Even if it’s just the start of the year, just drop in or make a friendly call. Better yet, remind him or her that you would like to set an appointment when the Annual Notice of Change arrives in September. Just make sure your agent is reminded of you so that you stay in his or her radar.
Finding the Best Package for Your Needs
When you consider making changes during AEP, the most important thing to do is get a thorough assessment of your current and projected healthcare expenses. Although you might already be satisfied with your current plan, it wouldn’t hurt to check out the prices offered by other providers to see if you’re getting the most bang out of your buck. Take note that Medicare Advantage plan fees vary depending on the provider.
If you’re still unsure if you should be concerned that AEP is approaching and what you should be doing to prepare, it’s best to consult with a qualified agent so everything is laid out clearly and no stone is left unturned. After all, it’s your health we are talking about here and that reason alone should be good enough for you to be extra mindful and vigilant about Medicare.
