What You Should Know About Medicare’s Annual Enrollment Period (AEP)

The Annual Enrollment Period (AEP) is a critical time for Medicare beneficiaries, offering the opportunity to make changes to your Medicare plans. Officially known as the “Medicare Advantage & Prescription Drug Plan Annual Enrollment Period,” this period runs from October 15 to December 7 every year, with changes taking effect on January 1 of the following year.

What is the Medicare Annual Enrollment Period?

During the AEP, all Medicare beneficiaries have the chance to review and adjust their Medicare coverage. It’s important to note that AEP is not for enrolling in Part A or Part B for the first time, but rather for making changes to existing plans. This period is crucial if you need to adjust your Medicare Advantage (Part C) or Prescription Drug Coverage (Part D) based on your current health needs or changes in the market.

Why Change Plans During AEP?

You are not required to change your plan during AEP, but if you’re going to, this is the time to review your options.

Medicare plans and personal health needs can change annually, making it essential to review your coverage during AEP. Whether it’s due to starting new medications or changes in financial circumstances, this period allows you to shop for plans that offer better benefits, more comprehensive drug coverage, or more affordable prices.

Changes You Can Make During AEP:

• Switch from Original Medicare to a Medicare Advantage plan.
• Change from one Medicare Advantage plan to another.
• Switch from Medicare Advantage back to Original Medicare (with an opportunity to add Part D until March 31).
• Enroll in, change, or drop Part D prescription drug coverage.
• Consider buying a Medigap policy if you switch back to Original Medicare.

Choosing the Right Medicare Plan:

Medicare Advantage Plans (Part C)

Medicare Advantage plans, offered by private companies, must cover all benefits of Part A and B and often include additional benefits like prescription drug coverage, dental, vision, and wellness programs. When selecting a plan, consider:

• The cost relative to benefits.
• Whether your prescriptions are covered.
• The plan’s network of doctors and hospitals.
• Any additional benefits that enhance value.

Prescription Drug Plans (Part D)

For those needing substantial drug coverage, reviewing the plan’s formulary—the list of covered drugs—is crucial. Plans vary in drug coverage and out-of-pocket costs, so choosing a plan that best covers your medications at the lowest cost is essential.

Other Important Enrollment Periods:

• Initial Enrollment Period (IEP): When you first become eligible for Medicare, typically starting three months before your 65th birthday and extending three months after.
• Special Enrollment Period (SEP): For making changes if you experience certain life events like moving or losing other insurance coverage.
• General Enrollment Period (GEP): From January 1 to March 31, for those who missed their IEP, to enroll in Parts A and B.
• Medicare Advantage Open Enrollment Period (OEP): From January 1 to March 31, to switch Medicare Advantage plans or revert to Original Medicare.

How to Change Medicare Plans During AEP

Changing plans requires careful consideration of your health coverage needs and financial situation. Start by reviewing any changes in your current plan’s Annual Notice of Change (ANOC) and Evidence of Coverage (EOC) documents. Consult with a licensed Medicare specialist who can provide insights into the latest plan offerings and help you make an informed decision.

For personalized assistance or to explore your Medicare options, contact our team for a free consultation or call (833) 567-3163.