Avila Medicare Solutions

Date of publication:

Annual Election Period Coming Soon

Here are Three Steps That Can Save You Money.

Key Points

  • The open enrollment period for Medicare Advantage and prescription drug plans begins October 15 and runs through December 7.
  • Do not automatically re-enroll in the same plan you have. Doctors and networks can change, and you may find yourself with very high costs.
  • In September, plans send members an "annual notice of change" inviting them to review changes in coverage, costs and services for the coming year.

We are a month and a half away from the Medicare open enrollment period, and now is the time to act if you want to save some money next year.

Every year from October 15 through December 7 is open enrollment for Medicare and Part D prescription drug coverage. This is a critical period for seniors, as this is when they can review, compare and shop for plans that will best meet their needs next year. Make sure you choose the right plan for your needs and don't miss out on a plan that might be better for you.

Changes you can make include switching from Original Medicare (Part A hospital insurance and Part B medical coverage) to a private Medicare Advantage plan. You can also switch from one Medicare Advantage plan to another, as well as purchase a prescription drug plan.

Determining what is appropriate is no easy task for consumers, who may not know the details of their coverage right away. For those who are still working, they may benefit from their work's personnel department who will sort through the plan options and present them with a menu of two or three different options to choose from. The same goes for prescription drug coverage, where an eHealth comparison tool could save you up to $982 a year, according to Shea's Health Marketplace, which tracked 111,000 users 1during the course of the 2019 open enrollment period.

Here are three steps that can help make the selection process a little less overwhelming.

1. Know your plan

Now in the month of September, keep an eye on your mailbox because you will receive an "annual change notice" from your Medicare plan detailing all the changes that will be made for the new year, including coverage and costs, such as premiums, deductibles and copayments. You will receive this notice only if you already have Medicare, regardless of whether you are employed or not.

Managing your costs involves more than just reviewing your premiums. It is critical that you gather your medical expenses for the past six months and obtain a list of the doctors you see regularly and the medications you take. Your new coverage and costs will be affected by new medical conditions, if any, as well as medications and doctors.

2. Compare plans

As soon as you have discovered the pros and cons of your plan, start comparing available plans. This is where you can get the best benefits and get the most out of your coverage.

Medicare has a very useful online tool that can help you select a plan. This plan finder will ask for your zip code and the details of the drugs you take, even if you get them in the mail. Keep this list handy and include them all.

You can also try state health insurance assistance programs, which offer free local counseling to enrollees, as well as local independent agencies that offer this free counseling to all Medicare beneficiaries, providing their knowledge and expertise to help you with your review and comparison of available Medicare Advantage and prescription drug plans in one place.

Do not assume that you can simply repeat the current year's coverage. Remember that maximizing your coverage and benefits depends on this annual review and only you can take the initiative to do so. Most people think that looking at their plan options and choosing one can be an overwhelming experience, but benefits and networks can change and you may find yourself involved in higher costs and missing out on extra benefits that could add value to your health care. In addition, current and future health conditions may also change.

3. Get into the habit of planning

When we talk about Medicare, it's important to talk about retirement planning. Working with your financial advisor can help you manage your premium costs. Premiums for some parts of Medicare, such as Part B (medical insurance) and Part D (prescription drugs) are based on your modified adjusted gross income from two years ago. That means the premiums you will pay in 2021 will be based on your 2019 income tax return.

At this point, there is not much to do to modify your 2019 income. However, you still have time to plan for 2022 premium expenses. Talk to your advisor now to see what you can do to manage your income for this year. It may help you reduce Medicare costs in the future.

Keeping these three tips in mind each year will not only help you be better prepared when vital plan changes are needed, but will also help you maximize your income by providing security and peace of mind. If you have any questions about your current coverage or upcoming plan changes for this year's annual election period, please contact us at 855-GO-AVILA or by e-mail to info@avilamedicare.com.

Do you have any doubts? Call us now.

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