Key Takeaways

1. Medicare’s Annual Enrollment Period (AEP) is the perfect time to review and optimize your Medicare coverage.
2. Reviewing your plan with a focus on costs, benefits, and network coverage can help you save money in 2024.

Can You Save Money This AEP? How to Review Your Medicare Plan Like a Pro

Medicare’s Annual Enrollment Period (AEP) for 2024 runs from October 15 to December 7, giving beneficiaries a limited but crucial window to review and make changes to their Medicare plans. These changes will take effect on January 1, 2025, so it’s essential to approach this opportunity with a strategic mindset. This guide will walk you through the steps to evaluate your current plan, compare alternatives, and identify savings opportunities during AEP.

What Is Medicare’s Annual Enrollment Period (AEP)?

AEP is a designated timeframe each year when individuals enrolled in Medicare can make changes to their health and prescription drug plans. It allows Medicare recipients to:

• Switch from Original Medicare to Medicare Advantage or vice versa.
• Change from one Medicare Advantage plan to another.
• Join, switch, or drop Medicare Part D prescription drug plans.

Since AEP occurs once a year, planning and understanding your needs beforehand is crucial to ensure you make the most out of this period.

Why Is Reviewing Your Medicare Plan Essential?

Healthcare needs and the structure of Medicare plans often change annually. What worked for you this year may not provide the best coverage or value next year. Here’s why a thorough review is vital:

1. Changes in Health Needs: Your medical requirements may change, necessitating a plan that covers different or additional services.
2. Plan Updates: Insurance providers may modify their plans each year, including changes to premiums, copays, network providers, and benefits.
3. Prescription Drug Coverage Adjustments: If your medications are no longer covered or have shifted to a higher tier, it could lead to increased costs.
4. Opportunity for Savings: Reviewing and switching plans can lead to lower premiums or reduced out-of-pocket expenses, which could save you money in 2024.

How to Start Reviewing Your Medicare Plan

To effectively review your Medicare plan, start by gathering all relevant information about your current plan, including costs, benefits, and network providers. Having these details on hand will make it easier to compare options.

Step 1: Review Your Annual Notice of Change (ANOC)

Each year, Medicare sends out an Annual Notice of Change (ANOC) document to inform beneficiaries of any updates to their plan for the upcoming year. This document highlights changes in costs, coverage, and service areas. Carefully reviewing the ANOC will give you a clear idea of how your plan may change and whether it will still meet your needs.

Step 2: Check Your Healthcare Usage Over the Past Year

Review your medical expenses from the past year, including doctor visits, hospital stays, and prescription medications. Understanding your healthcare usage will help you decide whether your current plan provides adequate coverage or if you need to find a more suitable option.

What Factors Should You Consider When Comparing Medicare Plans?

When assessing your options during AEP, consider the following factors to determine the best plan for your needs:

1. Premiums and Out-of-Pocket Costs:
   • Look at monthly premiums, deductibles, copayments, and coinsurance. A plan with a lower premium might have higher out-of-pocket costs, so balance these factors to find a cost-effective solution.
   • Table: Example Cost Comparison

2. Network Providers:

   • Ensure your preferred doctors, specialists, and hospitals are included in the network of the plan you are considering. Out-of-network care may result in higher costs.
   • Some Medicare Advantage plans offer additional services, like vision, dental, and hearing, which might be essential for your health needs.

3. Prescription Drug Coverage:

   • Confirm that your medications are covered under the plan’s formulary (list of covered drugs). Also, note which tier your drugs fall into, as this impacts your copayment amounts.
   • The formulary can change yearly, so it’s essential to verify drug coverage during AEP to avoid unexpected expenses.

What Changes Are New for Medicare in 2024?

For 2024, some Medicare plans may offer new benefits, while others may adjust their costs or coverage details. While the specifics vary by plan, some general trends to keep an eye out for include:

• Telehealth Services Expansion: Many plans are expanding telehealth coverage, allowing for more remote consultations with healthcare providers.
• Adjustments to Prescription Drug Costs: The cost of prescription drugs continues to be a focal point, with some plans adding more competitive pricing options for common medications.
• Additional Wellness Programs: Several plans may introduce or enhance wellness programs, including fitness memberships, mental health support, and preventive care services.

How Can You Maximize Your Savings During AEP?

By following a few strategic steps, you can maximize your savings and ensure your plan offers the most value.

Step 1: Use Medicare’s Plan Finder Tool

Medicare’s Plan Finder tool, available on the official Medicare website, is an excellent resource for comparing plans side by side. You can enter details about your current plan, medications, and preferred providers to see how different plans stack up.

• Table: Features of Medicare’s Plan Finder Tool

Step 2: Estimate Your Annual Healthcare Costs

To make an informed decision, estimate your total healthcare costs for the upcoming year. Include premiums, anticipated copays, and any potential out-of-pocket expenses based on your known medical conditions and needs. This will help you understand which plan offers the best balance of affordability and coverage.

What If You Want to Switch from Medicare Advantage to Original Medicare?

If you’re currently enrolled in a Medicare Advantage plan but want to switch back to Original Medicare, AEP is your chance. Keep in mind that Original Medicare may require you to purchase a separate Medicare Part D plan for prescription drug coverage and consider a Medigap (Medicare Supplement Insurance) policy for help with out-of-pocket costs like deductibles and coinsurance.

Tips for a Smooth Transition If You Switch Plans

Switching plans can be straightforward if you prepare in advance. Follow these tips:

1. Notify Your Providers: Ensure your healthcare providers are aware of the change so they can bill the new plan correctly.
2. Keep Records: Save a copy of your enrollment confirmation, and any plan details sent to you during AEP.
3. Monitor Plan Changes: After January 1, 2025, watch for any billing discrepancies or service denials and contact your plan’s customer service for assistance.

Common Mistakes to Avoid During AEP

To make the most of AEP, avoid these common pitfalls:

• Waiting Until the Last Minute: This could lead to rushed decisions and missed opportunities to find better plans.
• Not Reviewing Drug Coverage: Drug formularies change yearly, so failing to confirm that your medications are covered could be costly.
• Overlooking Network Changes: Plans often update their network providers, so verify that your doctors remain covered under your chosen plan.

Planning Ahead: Preparing for the Next AEP

While AEP offers a chance to adjust your plan, it’s also an opportunity to set the stage for next year. By staying informed about Medicare changes, tracking your healthcare usage, and budgeting for anticipated expenses, you can be proactive in managing your healthcare needs and costs in the future.

Reviewing Your Plan: The Key to Savings and Coverage

Taking the time to review your Medicare plan thoroughly during AEP can help you find opportunities for savings and better align your coverage with your needs. A little research and preparation now can lead to significant financial and health benefits in the upcoming year.