Showing posts with label Medicare annual election period. Show all posts
Showing posts with label Medicare annual election period. Show all posts

Saturday, October 31, 2020

Medicare Annual Election Period - Avoid Making Mistakes!

For the past few years, this blog has benefited from the wisdom of our Medicare expert, Danielle Kunkle Roberts.  She is the founder of Boomer Benefits and her company provides Medicare assistance to senior citizens in nearly every state.  Her contact information is always available in the side bar of this blog.  This month, she has written a helpful post which explains the most common mistakes people make during the Medicare Annual Election Period.

 If you are concerned about avoiding other potential Medicare mistakes, you will also want to read her new book "10 Costly Medicare Mistakes You Can't Afford to Make." (Ad)  It is full of excellent tips which everyone should know about before applying for Medicare.

Mistakes to Avoid During the AEP

by Danielle Kunkle Roberts

Medicare has several different enrollment periods. Some happen only once in your life, while others happen annually. The Annual Election Period (AEP), also called the Fall Open Enrollment Period, occurs every year from October 15th until December 7th.

The Annual Election Period (AEP) is for people who are already enrolled in Medicare, so if you are new to Medicare, the AEP will not pertain to you. During the AEP, you can enroll in, change, or drop a Medicare Advantage plan or Part D plan. The AEP does not apply to Medigap (Medicare Supplement) plans, however. You can apply for Medigap at any time, but if you are outside your Medigap Open Enrollment Period, you might have to pass a medical underwriting before a new company will accept you. 

Knowing exactly what the AEP is designed for and how to prepare for it will help you avoid these mistakes.

Mistake:  Missing your Annual Notice of Change

Every year, Part D and Medicare Advantage plans must send out an Annual Notice of Change (ANOC) letter to their beneficiaries. If you have a Medicare Part D plan or Medicare Advantage plan, you should receive your ANOC by September 30th.

Your Annual Notice of Change (ANOC) will either be mailed or emailed to you, depending on your preference. This notice will explain all the changes made to the plan for the following year, such as premium and formulary changes. Some insurers send letters with instructions for viewing your plan changes online. If your insurer is one of those, the notice you receive may not actually contain changes to your plan.

It’s important to review your Annual Notice of Change (ANOC) every year before the Annual Election Period (AEP) is over. If you ignore your ANOC and stick with your current plan, you may be surprised to discover on January 1st that your plan dropped one of your daily medications from the formulary or canceled a benefit you relied on.

The Annual Election Period is generally the only time you can change Part D plans each year, so if you’re unhappy with your current plan, make sure you explore your options and make the switch during the AEP.

On the other hand, if you are enrolled in Medicare Advantage, you have a second chance to change your coverage during the Medicare Advantage Open Enrollment Period (January 1st – March 31st).

Mistake:  Dropping your Medicare Advantage plan before getting approved for your Medigap plan

If you decide to switch to Original Medicare and Medigap during the Annual Election Period, make sure you are approved for a Medigap plan before you drop your Medicare Advantage plan. Unless you have Medigap guaranteed issue rights, you may be denied coverage due to a pre-existing condition.

Outside your Medigap Open Enrollment Period, it may take a few weeks for the insurer to approve your application. This is especially true if the company wants to review your medical records.

Wait until you get your approval letter and effective date to drop your other coverage. Otherwise, you could find yourself past the Annual Election Period with no opportunity to enroll in a Medicare Advantage plan until the following year.

Mistake:  Not using the Medicare Plan Finder Tool to shop Part D plans

Medicare created an online Plan Finder Tool several years ago that has become a one-stop-shop for Part D plans. It is the go-to place to compare all Part D plans offered in your ZIP code. The Plan Finder makes it easy to compare multiple Part D plans at one time.

At Boomer Benefits, we recommend that our Medigap clients use this tool during the AEP to shop for Part D plans. Since most Medicare enrollees have access to dozens of different Part D plans, the Plan Finder is really the easiest way to compare premiums and formularies. 

Remember, all of our Medigap clients have access to our client service team for help with issues related to Part D, even if your plan is with a company we do not represent. This is a completely free service for our Medigap clients. 

You will also have access to an annual Part D video which explains how to use the Medicare Plan Finder Tool to make sure you find the most cost-effective plans in your area every year.

Mistake:  Not enrolling in a new Model Part D plan as an insulin-dependent beneficiary

Starting January 1, 2021, there is a new program called the Part D Senior Savings Model. The 2020 AEP is the first time you can enroll in one of the new Model Part D plans. Enrolling in a Senior Savings Model Part D plan will cap your insulin copayments at $35 or lower.

If you take insulin and it’s covered by Part D, not Part B, be sure to enroll in a new Senior Savings Model Part D plan during this year’s AEP. Doing so will cap your insulin spending at no more than $420 for 2021.

Conclusion

For many Medicare beneficiaries, the Annual Election Period (AEP) is a stressful time of year. But if you know the purpose of the AEP and how to prepare for it, you’ll glide right through and get the coverage you need.

If you are shopping for Medicare Advantage plans, Boomer Benefits can help you find the most cost-effective plan in your area. You can also give us a call at (855) 732-9055 if you have a Medicare Advantage plan, but would like to switch to a Medigap plan. You can learn more at BoomerBenefits.com.

Be sure to check out Boomer Benefits co-founder Danielle Kunkle Roberts’ new book, "10 Costly Medicare Mistakes You Can’t Afford to Make." (Ad) This best-selling book discusses ten other mistakes it is all too easy to make throughout your Medicare journey.

Are you interested in learning more about Medicare, Social Security, common medical problems, financial planning, where to live in retirement and more?  Use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission at no extra cost to you.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Graphic credit: Book cover

Tuesday, September 24, 2019

Medicare Open Enrollment - Annual Election Period - What Should You Do?


It is nearly time for the start of the Medicare Open Enrollment or Annual Election period which runs from October 15 until December 7 each fall.  As a result, we have invited our Medicare expert, Danielle Roberts, to explain what you may wish to do during this Medicare Annual Election period.  This is your opportunity to make changes to your Medicare Advantage plan and Medicare Part D plan.  

Danielle Roberts explains what you can and cannot do during this period of time.  It is important information for all Medicare beneficiaries. The more you know about how Medicare works and when you can make changes to your plan, the more you will benefit from the program.  If you have more questions after reading this article, you can contact Danielle Roberts or her staff directly at Boomer Benefits.  You can also find additional contact information for Boomer Benefits in the sidebar of this blog, under the information about our Medicare Expert.

What to do During Medicare Open Enrollment

 by: Danielle Roberts


Like other insurance programs, Medicare has designated enrollment periods. In fact, there are different enrollment periods for each part of Medicare. Some occur only once in a beneficiary’s lifetime, while others happen annually.

The Medicare Open Enrollment period in the fall is a very important enrollment period that affects nearly every beneficiary every year. It is also one of the most misunderstood enrollment periods.

What is the Open Enrollment period?

The main reason beneficiaries misunderstand this period is because of its name. There are multiple enrollment periods with the words “Open Enrollment” in the title. The Medicare Fall Open Enrollment period is often mistaken to be a Medicare Supplement (Medigap) Open Enrollment window. However, that is not the case and these two periods are very different.

The Medicare Open Enrollment period in the autumn of each year is also known as the Annual Election Period. Calling it the Annual Election Period is a good way to differentiate it from other Medicare enrollment periods. 

This period occurs every year in the fall between October 15th and December 7th. During this period, Medicare beneficiaries can enroll in, change, or dis-enroll from Medicare Advantage plans and Part D drug plans

They cannot, however, use this time to apply for a Medigap plan without going through medical underwriting. This is the part most people get wrong.

Medicare beneficiaries can apply to change Medigap plans at any time throughout the year. However, if they are outside of their one-time 6-month Medigap open enrollment window, they will have to answer health questions. So, it’s important for them to realize that they cannot use the period in the fall to enroll in a Medigap plan without underwriting.

How should beneficiaries prepare for the Open Enrollment period?

Medicare beneficiaries who have enrolled in a Medicare Advantage plan or Part D drug plan should look out for their Annual Notice of Change during September. This letter explains the changes the carrier plans to make to that specific plan for the next year. Every beneficiary needs to review this notice and decide whether they are okay with the changes or if they’d like a new plan.

Although Medicare beneficiaries are not required to change Medicare Advantage and Part D plans every year, they should review the other plans in their area to see if there is a more cost-effective option.

The next step is to contact a Medicare brokerage that represents several insurance carriers and plans. Beneficiaries should review and compare plans with the broker to learn which plan they should switch to during the Open Enrollment period. 

When comparing plans, beneficiaries should be looking for a plan that:

·       Includes their doctors in the network
·       Covers their important medications
·       Is the most cost-effective of the available options

Some Medicare Advantage plans offer extra benefits, such as free gym memberships. Consider a benefit like this as a cherry on top. Beneficiaries should not base their decision solely on the fact that a plan has a free gym membership and the other more cost-effective plan does not.

When choosing health insurance, you want the plan that will satisfactorily cover any major illnesses or injuries. Extra benefits are nice, but not the most important thing.

What to do During the Fall Open Enrollment Window

Once the period starts on October 15th, beneficiaries can apply to change their Medicare Advantage and Part D plans. It takes a few weeks to be approved after the application is completed since millions of other beneficiaries are also changing plans at this time of year. All changes made during the Open Enrollment period go into effect on January 1st of the next year.

Beneficiaries should not cancel their current coverage until they have been approved for their new plan. If a beneficiary cancels his Medicare Advantage plan to apply for a Medigap plan and then gets denied by the Medigap company, the beneficiary may not have enough time to get re-enrolled in a Medicare Advantage plan before December 7th

So, to review, every beneficiary should review their Annual Notice of Changes in September, research local plans, and apply for the plan within the time frame. Taking these steps ensures a smooth transition into your new coverage. 

About Danielle Robert's company, Boomer Benefits:

"Founded in 2005 in Fort Worth, TX, Boomer Benefits is an award-winning insurance agency for national insurance carriers such as Blue Cross Blue Shield, Aetna, Cigna, Mutual of Omaha and many other A-rated carriers. We are licensed in 47 states. Over the years, we’ve learned just about everything there is to know about Medicare, and we’ve become known as the baby boomers insurance agency. We pass that knowledge on to you – absolutely free. There is never a charge for our services. Boomer Benefits Consulting is free."

Readers can contact Danielle Roberts and her wonderful staff at Boomer Benefits at:

1-855-732-9055


If you are interested in learning more about Medicare, Social Security, financial planning, where to retire, common medical issues and more, use the tabs or pull down menu to find links to hundreds of additional helpful articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  Boomer Benefits