Justin Brock is the President of Medicare Gurus. Check out our book, Medicare Breakdown, on Amazon.
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You probably haven’t been able to turn the TV on, listen to the radio or check social media without a notification or advertisement about Medicare Annual Enrollment Period, also known as the AEP. But why is this time of year so important, and what really happens during AEP? In this article, I’ll talk about why paying attention to your Medicare Advantage and Medicare Part D plans is so important and what to do from now until the new year.
What is the Annual Enrollment Period?
Medicare’s AEP takes place annually from October 15 through December 7. During these couple of months, you can change your Medicare Advantage or Medicare Part D plans. (If you have a Medicare Advantage plan, you probably don’t have a Medicare Part D plan, but in rare instances, you may have both.) Changes you make during this time will go into effect January 1 of the upcoming year.
AEP allows you to do a few things. You may change Part D plans, Part C plans (Medicare Advantage plans), go from a Medicare Advantage plan to Original Medicare, or go from Original Medicare to a Medicare Advantage plan.
You can also change your Medigap plan or any other policies you may have, such as a dental, vision or hearing plan, but those are things you can actually do all year long. If you can avoid them during AEP, that is best as insurance companies are extremely busy during this time, and it could take much longer to finalize your policy.
What do you need to do during the AEP?
First and foremost, start planning early. Yes, the AEP lasts roughly two months, but planning ahead and booking your appointment to review your plan well in advance is a good idea. Agencies book up quickly during this time, and you do not want to miss your chance to review your plan, make changes and maybe even save a little money.
Think about what you do and don’t like about your current plan. You can even make a list to review with your agent to help them know which plans may meet your needs better. If you’re not sure what your current plan covers — whether it’s your Part C or Part D plan — you can find that information in your Evidence of Coverage (EOC).
The EOC will be mailed to you by September 30 of the current year, along with another extremely important document: the Annual Notice of Change (ANOC). The ANOC will provide you with information about how your current plan is changing. This may include changes to the premium, deductible or overall coverage.
I can’t stress enough how important it is to review this document (or have an agent review it with you). Part C and Part D plans can and will change each year. You may have all your needs covered now, but that could change in the new year. The ANOC will make you aware of those changes.
Whatever you do, please don’t ignore the AEP. Remember, Thanksgiving falls in this enrollment period, and people get busy with Christmas plans right after that. No changes can be made to your Part C or D plan after December 7, so it is important to plan ahead.
One last important note. You will probably get many calls during this time. Call centers make thousands of calls each day and are completely unaware of your unique situation. I caution people about enrolling in a Medicare plan over the phone with someone they do not know.
Often, these call centers know nothing about you and may even enroll you in a plan you do not qualify for. If you hear about a plan that you’d like to discuss with your agent, by all means, do. Just don’t make any major changes over the phone with a company that does not know you.
Find someone that you can trust. They might not be local, but properly vet the people you seek out utilizing the Better Business Bureau, Trustpilot or even Google reviews.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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