As your health and wellness needs change, so should your health coverage. The Medicare Annual Enrollment Period (AEP) provides a great opportunity to review your health coverage needs.
AEP runs from Oct. 15 to Dec. 7 every year. And in most cases, is the only time individuals already enrolled in Medicare can change their plan or carrier.
When you first choose Medicare coverage around your 65th birthday, you likely spent a significant amount of time evaluating your options and finding the best fit for your life and budget. But after that initial enrollment, many don’t take the time to re-evaluate their options.
By reviewing your options annually, you’re able to ensure that your plan meets your current health needs, especially since plan costs and benefits may have changed.
Supplemental coverage
The first step is to evaluate if you need more coverage than Original Medicare (Parts A and B) offers. Original Medicare covers roughly 80 percent of medical expenses. If you would benefit from additional coverage, you may want to explore supplemental options.
A Medicare Advantage plan, also known as Medicare Part C, is offered through private insurance companies and supplements Original Medicare. Many of these plans offer additional benefits such as health and wellness programs and prescription drug coverage. With a Medicare Advantage Plan, you’ll have a monthly premium in addition to your Plan B premium, but it could be as low as $0. Your out-of-pocket expenses and deductibles may be lowered, and you’ll also have predictable copayments.
If a Medicare Advantage plan isn’t right for you, a Medigap plan is another option. Medigap plans also help cover costs that Original Medicare doesn’t. However, the tradeoff for paying less for out-of-pocket health expenses is a higher monthly premium.
It’s important to remember that you can only enroll in one of these types of plans, as you cannot have both a Medigap and Medicare Advantage plan.
Here are a few things to think about as you decide:
- Your health coverage usage: Consider how you used your current plan over the last 12 months to estimate your costs for next year. This should include expenses like monthly premiums, deductibles, copays and prescription costs. Keep in mind that Medicare Advantage plans have out-of-pocket maximums for medical expenses.
- Your health: Pre-existing or chronic conditions won’t affect a Medicare Advantage premium but could impact Medigap eligibility and premium costs.
- Important dates: If you plan to switch to a Medicare Advantage plan, you must do so between Oct. 15 and Dec. 7.
Additional resources
The amount of Medicare options may seem overwhelming, but there are a number of resources that can help. One great resource is medicare.gov. It offers a simplified flow chart outlining different plan options and additional resources to help answer any questions.
Additionally, check with your current provider or a trusted insurance agent to see if they have any specific tools that may be helpful in your search. For example, Priority Health offers an interactive tool that allows you to select the perfect plan for your specific needs.
Review your options today, so that you have plenty of time to make a decision before the Dec. 7 deadline.
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