Every year, Medicare health and drug plans make changes to costs, coverage, providers, and pharmacies in their networks. Between coverage changes and health condition changes, it is wise to revisit health plans during the open enrollment period annually. Medicare’s annual open enrollment period begins October 15 and ends December 7.
How to Evaluate Your Plan
If you are already on Medicare, you should’ve received an “annual notice of change” from your Medicare plan in September. This letter explains all the changes coming in the new year, including coverage and costs such as premiums, deductibles, and copays.
Review your medical expenses over the last six months, including a list of the doctors you see regularly and the medications you need. The best Medicare plan for you will be the one that saves you money on ALL of your expenses, not just your premium. By reviewing your medicines and doctors for the last six months, you can account for changes in your health as well.
How to Find the Right Plan
The Medicare Plan Finder on Medicare.gov is an online tool from the government to help you select a plan. After you enter your zip code and details about your medications and whether you receive them by mail, you can compare plans available in your area. You can also try the State Health Insurance Assistance Programs, which offer free local counseling to enrollees, or call 1-800-MEDICARE.
What is Medigap?
Original Medicare pays for much, but not all of the cost for covered health care services and supplies. A Medigap policy can help pay some of the remaining health care costs, such as copayments, coinsurance, and deductibles. Medicare beneficiaries without some sort of Medicare Supplement Insurance (Medigap) may face Medicare cost-sharing if they have health problems.
If you are not able to purchase a Medigap policy, a Medicare Medical Savings Account (MSA) might be a good option. MSAs combine high-deductible insurance plans with a medical savings account that you can use to pay for your health care costs.
What is Medicare Advantage?
Medicare Advantage plans are a type of Medicare health plan offered by a private company that contracts with Medicare to provide all of your Part A and Part B benefits. Most Medicare Advantage plans also offer prescription drug coverage. Before switching to a Medicare Advantage plan, be sure to examine it closely to see if it makes sense. While many have $0 premiums, the out-of-pocket costs can be high, or your hospital or your doctor may not be in-network.
If you choose a Medicare Advantage plan, there is a 12-month trial period during which you can go back to Original Medicare. However, this period is only available once, so be careful if you select a Medicare Advantage program to be sure that all of your medications and doctors will be covered.