The Medicare Annual Enrollment Period (AEP) is a crucial time for Medicare beneficiaries to review their health care options and make necessary changes to their coverage. This period gives eligible individuals the opportunity to evaluate their needs and adjust their Medicare plans accordingly.
During this period, beneficiaries can:
Change Medicare Advantage Plans: Switch from one Medicare Advantage plan to another, or revert to Original Medicare (Parts A & B).
Enroll in a new Part D plan: Sign up for a new prescription drug plan or make changes to existing coverage.
Switch from Original Medicare to a Medicare Advantage Plan: Transition to a Medicare Advantage plan if you currently have Original Medicare.
Changes made during this period will take effect January 1 of the following year.
Medicare Supplement (Medigap) plans can be applied for at any time of year and do not need to be addressed during the Annual Enrollment Period unless you are concerned about a rate increase.
Every year we see small changes to Medicare plans, however this year we expect changes that will greatly impact part D (prescription) AND part C (Medicare Advantage) plans. These changes stem from the Inflation Reduction Act and the elimination of the Coverage Gap Phase (Donut hole) of Medicare drug coverage.
The GREAT news is that the individual maximum out of pocket responsibility for drug coverage will be $2,000, instead of the current $8,000. We will see repercussions for this though, and they are expected in the form of one or all of the following.
For part D plans:
- Increased plan premiums (primarily expected on part D plans)
- Slimmer formularies (the list of covered drugs); some medications may no longer be covered
- Higher copays (a set dollar amount) and higher coinsurances (a percentage of the medication retail price)
- Medicare Advantage plans will likely see slimmer benefits and increased copays.
The changes do not need to be stressful! Tips for a calm enrollment period:
- Watch out for and READ your Annual Notice of Changes (ANOC) letter that will come from your current insurance company in late September.
- Notice the 2025 updates and decide if they are acceptable or if a plan change would benefit you.
- Contact a local broker to guide you through the upcoming changes and help you find and enroll in the best plan for you.
The Medicare Annual Enrollment Period is a vital opportunity for beneficiaries to reassess their health care plans and ensure they are getting the best coverage for their needs at the most affordable price.
By being proactive and using the resources available, Medicare beneficiaries can make informed decisions that support their health and financial well-being in the coming year.