The Medicare Annual Enrollment Period (AEP), often called Open Enrollment, begins on October 15 of each year.
Each year, Medicare health and drug plans may make changes to the cost (premiums), the coverage provided, as well as the providers and pharmacies in their networks. And AEP is the time when millions of people with Medicare can generally change their Medicare health plans and prescription drug coverage for the following year.
Here are some tips to help consumers find the best plan and cost options.
About 22 million people are covered through a Medicare Advantage plan. That’s about a third of the total Medicare eligible population. In some states like California and Oregon, 40 to 42 percent of all Medicare eligible have a Medicare Advantage plan. In Alaska, it’s just one percent and just three percent in Wyoming.
Today, many Medicare Advantage plans offer zero plan cost and multiple additional benefits, all of which sound great. However, they may have a high deductible that can cost thousands of dollars in the event you have a hospital stay.
If you choose a Medicare Advantage plan or are considering a change during the AEP, it is important that you understand the full package and the potential costs you may face.
Some 15 million people have selected a Medicare supplement insurance plan, also commonly called Medigap. These plans offer a variety of options, identified by letters of the alphabet, such as A, C, G, and N.
According to the 2020 Medicare Insurance Price Index from the American Association for Medicare Supplement Insurance, there can be a wide variation in Medigap insurance prices. The AAMSI index is a valuable resource for consumers who want to know the lowest and highest prices for nearly 100 leading cities in the US The cost differences for Medigap Plan G, the most common choice among seniors who comply 65 years, can be significant. In Atlanta, just one of the cities listed, a 65-year-old woman could pay as little as $ 102 per month or as much as $ 244 per month for virtually identical Plan G insurance coverage.
Another important thing to know is that some plans offer discounts for the home. The potential savings can be as high as 14 percent. For those considering Medigap coverage, ask about the company’s history of premium rate increases. This can be a valuable indication of what one might expect in the future.
The Medicare.gov website is an exceptional resource for consumers. However, experts point out that it can be overwhelming to navigate and there are some important things the government doesn’t tell you. The AAMSI website contains 18 things every consumer should know that the Medicare.gov website may not clearly explain.
Some of the best sources of information are local insurance agents who specialize in helping seniors compare plan options and prices. The best ones will know which health and medical professionals participate in the various programs and what other area residents have to say about the particular plan.
A directory of Medicare insurance agents can be accessed online. Unlike other websites seeking to collect your information for future marketing, this directory is available free of charge and is completely private for your use.
The annual Medicare AEP lasts only a few weeks and ends on December 7. With about 61 million Americans who have Medicare, it is important to act early during the time frame. Waiting can be a costly mistake.