The Medicare annual election period commonly known as AEP is quickly approaching.
AEP begins on Oct. 15 and runs through Dec. 7.
This is the time period when Medicare health and drug plans make changes and Medicare plan enrollees can reevaluate their coverage and change plans.
The new coverage becomes effective on Jan. 1. In most cases once enrolled you are committed for the calendar year.
Prior to the annual enrollment period, Medicare Advantage & Prescription Drug Plan members receive notification, an annual notice of change, from their health plans as to the plan changes for the following year.
The packet is sent out at the end of September, giving the members ample time to review the benefits. At this time, Medicare also sends out the new “Medicare & You” handbook giving you the new Medicare costs, benefits and plans for the upcoming year.
During the Annual Enrollment Period anyone with Medicare Parts A and B can choose to join a Medicare Advantage plan, Part C, or enroll in a prescription drug plan, Part D.
Those who belong to a Medicare Advantage plan can change their plan or return to original Medicare and choose a prescription drug plan.
Anyone with a prescription drug plan can change to a new prescription drug plan or enroll in a Medicare Advantage plan.
If you didn’t enroll in a prescription drug plan or a Medicare Advantage plan when first eligible you can do so during this time period, however you may be assessed a late enrollment penalty.
If you decide to keep your current plan, assuming your plan will continue to be available, there’s no need to do anything as it will automatically renew for the next calendar year. If your plan is being discontinued, you will receive a non-renewal notice from the carrier prior to open enrollment.
In any case there are steps everyone should take before locking in for another year. Whether keeping your current plan or deciding on a new plan the first step is to determine that the premium and the benefits fit your needs.
Next check the prescription drug formulary to make sure your current drugs are on the new formulary and check the pricing. Remember not every drug is covered on every plan and the pricing of the drugs also varies by plan.
If you belong to a Medicare Advantage plan or thinking of joining one you must review your doctors to determine if they are in the plans network. Doctors can decide to join or leave plans for one reason or another. If your plan is an HMO and the doctor is not in the network, his services will not be covered by the plan.
If you decide to stay with original Medicare and a prescription drug plan you might want to look into a Medicare Supplement plan at this time to help cover some of the costs such as deductibles and co-insurance. Without a plan to work with original Medicare there is no cap on your out of pocket exposure.
This time of year can be overwhelming and confusing.
The carriers advertise on TV, send cards in the mail and hold local seminars to educate the public as to their plans’ availability in the area. It is important to take advantage of all the resources available, so you can make an informed decision regarding your health plan options.
This is the perfect time for each Medicare beneficiary to consider their changing healthcare needs, finances and also life events which may necessitate a new health plan in the new year.
By Julie Ward-Abdo
Senior Health Plan Finder
www.SeniorHealthPlanFinder.com
