Can You Keep Your Medicare Plan Each Year?

The Annual Enrollment Period (AEP) is a great time to look at your Medicare insurance plan and the options available to you.

If you’re enrolled in Original Medicare, your coverage will remain the same unless there’s a change to the program itself, like annual updates in costs. Beneficiaries with Medicare Part C, or Medicare Advantage, have it a little different, though.

What Happens to Your Medicare Plan Each Year?

Insurance carriers update their plans to reflect changes in the health care industry, beneficiary feedback, and more. What this means for consumers is that there will be a new version of their plan for the next year. There won’t always be major changes, but you may see a shift in anything from premiums and deductibles to coinsurances and copays. Carriers may also adjust cost-sharing amounts or add new coverages. It’s important that you look at you plan closely so you understand your costs and coverages for the next year.

The upside of staying enrolled in your current plan is that you don’t need to do anything; you’ll just be rolled over into the next plan.

If you stay enrolled in your current plan, it will automatically be updated. The upside of this is that you don’t need to do anything; you’ll just be rolled over into the next plan. Of course, the downside is if you liked your old plan and dislike some of the changes. This is why analyzing the next plan can be so important. Your Medicare coverage should never catch you by surprise.

How Can You Find Out What Changes?

When your plan changes, you are required to be notified by September with an Annual Notice of Change (ANOC). This notice covers any and all changes that will become effective starting January of the next year, giving you ample time to weigh your options before AEP. If you don’t, contact your plan.

The ANOC covers any and all changes that will become effective starting January of the next year.

Luckily, there are places to help you make sense of your ANOC. A Medicare plan finder tool can help you compare your current plan, your upcoming plan, and other plans in the area. Similarly, speaking with a licensed insurance agent you trust can be helpful. Finally, you can contact a State Health Insurance Assistance Program (SHIP) for guidance.

What Else Should You Do?

While we won’t make any direct suggestions, we will say that it doesn’t hurt to look at your options during AEP each year to make sure that your current plan aligns well with your current and future needs. Since you’re already exploring your plan for the next year, why not compare it with other plans? That said, if you’re happy with your updated plan, staying enrolled can be a great idea!

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The health care industry is always changing with new techniques, knowledge, and devices being developed and perfected. To keep up with these changes, your Medicare plan will adapt as well. If you know what to expect, you can prepare for the changes by studying the incoming ANOC or by exploring the local Medicare insurance plans available to you.