As fall approaches, so does an essential opportunity for millions of Americans — Medicare open enrollment, also known as the annual election period (AEP). The open enrollment period occurs annually, running from October 15 to December 7; during this period, Medicare enrollees are able to review and make changes to their coverage. It's a crucial time to assess your healthcare requirements, evaluate your current plans, and align your coverage with your evolving healthcare needs.

Understanding Medicare and its parts

Before delving into open enrollment options, it’s important to understand how Medicare is structured and what the different parts refer to. A federal health insurance program, Medicare is primarily intended for individuals aged 65 and older, but also covers certain younger people, such as those with disabilities. Medicare is composed of four different parts, each offering specific coverage:

• Part A (Hospital Insurance): Covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home healthcare.
• Part B (Medical Insurance): Covers outpatient care, doctor's visits, preventive services, and some home healthcare.
• Part C (Medicare Advantage): Offered by private insurance companies approved by Medicare, Medicare Advantage plans combine Part A and Part B coverage and often include additional benefits like vision, dental, and prescription drug coverage.
• Part D (Prescription Drug Coverage): Provides prescription drug coverage through private insurance companies that are approved by Medicare.

Why is Medicare open enrollment important?

Health needs often change from year to year, and open enrollment offers an opportunity to ensure that your chosen plan still meets your needs, or to make adjustments to your coverage. During open enrollment, you can review your current Medicare coverage, including Part C and Part D plans, and compare them with other available options. Here are some of the actions you can take during open enrollment:

• Coverage changes: Beneficiaries can switch from Original Medicare (Part A and Part B) to a Medicare Advantage plan, or vice versa. You can also switch between different Medicare Advantage plans or change their Part D prescription drug plan.
• New enrollment: Anyone who missed their initial enrollment period can join Medicare Advantage or Part D plans during this period. However, it’s important to be aware that late enrollment penalties may apply in some cases.
• Supplemental coverage: Medicare Supplement Insurance, also known as Medigap, can be bought or changed during open enrollment. Medigap policies can help cover some costs that may not be covered by Medicare itself.

Making informed decisions

As open enrollment nears, here are some initial steps you can take to prepare to make the most of this opportunity:

• Review your current coverage: Understand the coverage and costs of your existing plan. Take note of any changes in premiums, deductibles, and coverage limitations.
• Assess your health needs: Consider any changes in your health status or prescription medications, and assess whether your plan adequately covers necessary treatments and medications.
• Compare options: There are a variety of online tools and resources to compare different Medicare Advantage and Part D plans. Consider factors like network coverage, drug formularies, and out-of-pocket costs.
• Seek assistance: Organizations like the State Health Insurance Assistance Program (SHIP) offer free counseling to help individuals understand their Medicare options.

There are lots of resources available to help you navigate Medicare open enrollment and make informed decisions. Here are a few to get started:

• https://www.medicareresources.org/medicare-open-enrollment/
• https://www.medicare.gov/basics/get-started-with-medicare
• https://www.cms.gov/Outreach-and-Education/Reach-Out/Find-tools-to-help-you-help-others/Medicare-Open-Enrollment

You can also enlist help from family members, caregivers, and trusted friends who may be able to provide valuable insight in the decision-making process.

We’re here to help

Medicare open enrollment is a valuable opportunity to review your plan and align your Medicare coverage with your healthcare needs; taking the time to explore your options can lead to greater peace of mind and improve your access to important medical services. If you would like to speak with an advisor about how Medicare fits into your financial plan, please feel free to contact us at any time.