Annual Election Period
Key Points
You sign up for Medicare Part A and Part B through Social Security, while other parts and plans are purchased through private insurance carriers.
If you have other creditable coverage, such as large employer insurance, you may be able to delay Medicare past 65 without penalty.
Most people enroll in Medicare during their 7-month Initial Enrollment period, which takes place around their 65th birthday.
Annual Election Period
What is the Annual Election Period (AEP)?
The Annual Election Period (AEP), often referred to as AEP, is a specific timeframe each year when Medicare beneficiaries can make changes to their Medicare coverage. It runs from October 15th to December 7th. During this period, you have the opportunity to review your current Medicare plans and decide if they still meet your needs or if you want to switch things up.
Why is AEP Important?
Think of AEP as your annual insurance check-up. Just like you see your doctor for a yearly physical, AEP is your chance to ensure your Medicare coverage is still the best fit for you. Health needs and financial situations can change, and the AEP allows you to adjust your plan accordingly.
Who Can Participate in AEP?
AEP is available to anyone enrolled in Medicare. This includes:
- Those with Original Medicare (Part A and Part B)
- Beneficiaries enrolled in Medicare Advantage plans
- Individuals with Medicare Part D prescription drug plans
Even if you’re happy with your current plan, it’s wise to review your options during AEP. You never know when a new plan might offer better benefits or lower costs.
Changes You Can Make During AEP
During the AEP, you can:
- Switch from Original Medicare to a Medicare Advantage Plan
- Change from one Medicare Advantage Plan to another
- Return to Original Medicare from a Medicare Advantage Plan
- Enroll in, switch, or drop a Medicare Part D prescription drug plan
Mary had been on Original Medicare for years. She was comfortable with it but hadn’t realized how much Medicare Advantage plans had improved. During AEP, we reviewed her health needs and found a Medicare Advantage plan that covered her gym membership and dental care—services she had been paying for out-of-pocket. Switching plans saved her money and improved her coverage.
Preparing for AEP
Preparation is key to making the most of AEP. Here are some steps to help you get ready:
Review Your Current Coverage
Take a close look at your current Medicare plan. Are you happy with it? Are there any gaps in your coverage? Assess your healthcare needs, considering any changes in your health over the past year.
Compare Available Plans
Use a comparison a Medicare Plan Finder tool to compare plans in your area. You can see the premiums, out-of-pocket costs, and what each plan covers. Don’t hesitate to consult with an insurance representative or advisor—they can provide valuable insights.
Understand Plan Changes
Medicare plans can change from year to year. Make sure to review any notices you receive from your current plan about changes to premiums, coverage, and provider networks. This information is usually sent out in September, giving you time to consider your options before AEP begins. Work with a Licensed Insurance Agent who can help you navigate the options and enroll in a new plan.
Important Considerations
- Costs and Benefits: Consider the premiums, co-pays, and out-of-pocket maximums of any new plan.
- Continuity of Care: Ensure that your preferred doctors and hospitals are in-network with any new plan.
John was on a Medicare Advantage plan that no longer included his primary care physician in its network. During AEP, we found another Medicare Advantage plan that included his doctor and offered additional benefits like vision and hearing coverage. John made the switch, ensuring he could continue seeing his trusted physician without interruption.
After the AEP
Once you’ve made your changes, you’ll receive new plan materials and membership cards. The changes you make during AEP will take effect on January 1st of the following year.
Utilizing New Benefits
Familiarize yourself with the new benefits and coverage details. Make sure to understand how to use your new plan and who to contact for customer service issues.
FAQ
What if I Miss the AEP?
If you miss the AEP, you may have to wait until the next AEP to make changes to your plan. However, there may be other election periods available to you throughout the year.
Can I Change My Plan After the AEP?
In general, you’ll need to wait until the next AEP to make changes. However, there is a Medicare Advantage Open Enrollment Period from January 1st to March 31st each year, during which you can make some changes to your Medicare Advantage plan and additionally Special Election Periods for certain life events.
What if I’m Unhappy with My New Plan?
If you’re unhappy with your new plan, you can switch plans during the Medicare Advantage Open Enrollment Period (Jan 1 – Mar 31). Additionally, understanding the details of your new plan can help mitigate any unexpected issues.
Conclusion
The Annual Election Period (AEP) is a valuable time for Medicare beneficiaries to review and adjust their coverage. By preparing ahead, comparing plans, and understanding your options, you can make informed decisions that best meet your health and financial needs. Remember, it’s all about ensuring you have the coverage that’s right for you.