Enrolling in Medicare and Changing Your Medicare Plan
When you first turn 65 years old, you are in what is called your Initial Enrollment Period. You have a limited amount of time to decide which Medicare plan you want to choose. We will talk more about this important first step in a few minutes.
But what do you do if you are unhappy with the plan or you move to a new town or state and want to switch plans?
In most cases, you will be able to make changes to your Medicare plan at various times throughout the year if certain things change about your situation.
INITIAL ELECTION PERIOD
If you are brand new to Medicare, you are in what is called your Initial Election Period. It starts three months prior to your 65th birthday month and ends three months after your birthday month (for a total of 7 months).
During this time, you can enroll in original Medicare (Parts A and B), as well as choose a Medicare Advantage (Part C) Plan and/or a Prescription Drug (Part D) Plan.
There are several choices to choose from, and your options will vary based on the county you live in. It is highly recommended that you speak with a licensed Medicare broker that can help you navigate the various options and explain the differences between those options.
In addition, you may also want to consider a Medicare Supplement
MEDICARE SUPPLEMENT OPEN ENROLLMENT PERIOD
Medicare Supplements have a slightly different enrollment period. Don’t miss this special opportunity. This enrollment period starts the first month that you are age 65 and lasts for 6 months. This is an important enrollment period because it is the time period in which you have guarantee issue rights (you cannot be denied coverage) for a Medicare Supplement.
If you miss your open enrollment period for Medicare Supplements, you can apply anytime. The only negative to this is that you are not guaranteed to be accepted.
The plan will require medical underwriting and could deny your coverage, or charge you a higher premium based on your health history.
So, if you are leaning toward a Medicare Supplement over a Medicare Advantage plan, your time for guaranteed lower rates is during Medicare Supplement Open Enrollment.
CHANGING PLANS
Most people will keep the same Medicare plan year after year, especially if you are on a good plan. This is another great reason to have a local Medicare broker that really understands how well these plans perform.
Your broker will help you get in a plan that best fits your needs. But over time, your healthcare-related needs will change. In addition, plan coverage and costs can change from year to year as well. So, you may need to change your plan.
In most cases, the time to change your Medicare plan is during the Medicare Annual Enrollment Period. But there are other events throughout the year that may open what’s called a Medicare Special Enrollment Period.
If you are on a Medicare Advantage plan, you also have a 1-time “correction” period known as the Medicare Advantage Open Enrollment Period.
ANNUAL ELECTION PERIOD
Medicare Annual Enrollment occurs every year from October 15 – December 7. This is the time you can change your coverage choices if you want to. Changes made during this time take effect on January 1 of the following year. If you are happy with your current plan, you do not need to take any action during the annual election period, your plan will simply renew automatically at the start of the new year.
Each year, your current plan will send you a document called the Annual Notice of Change. The notice explains any plan changes that will go into effect at the start of the new year. It is important to review this document so there are no surprises. You can also call your broker to help you understand your notice if things are unclear.
Here are the changes you can make during Annual Enrollment:
- Enroll in a Medicare Advantage plan for the first time.
- Drop a Medicare Advantage plan and go back to Original Medicare.
- Switch from one Medicare Advantage plan to another.
- Join, switch, or drop a Medicare Prescription Drug plan (Part D). Be aware that you may be charged a late enrollment penalty if later you decide to join a Part D plan again.
- Annual Enrollment is also a good time to enroll in a Medicare Supplement plan from a Medicare Advantage plan. It gives you time to make sure you will be accepted by the plan before you must make a final decision.
MEDICARE ADVANTAGE OPEN ENROLLMENT PERIOD
The Medicare Advantage Open Enrollment Period allows you to make a one-time correction/change to a different Medicare Advantage plan, or simply drop your Medicare Advantage plan and go back to Original Medicare. The first rule with this election period is that you must be enrolled in a Medicare Advantage plan to be able to make a change. The open enrollment period happens every year from January 1 – March 31.
MEDICARE SPECIAL ENROLLMENT PERIOD
A Medicare Special Enrollment Period is available in certain situations and allows you to join, change or drop a Medicare Advantage plan or Prescription Drug plan outside of the Annual Enrollment Period.
These events are also known as “qualifying events”. For the most part, you have 2 full months after the month of the qualifying event to make a plan change.
Here is a list of the most common events that qualify as a Special Election Period:
- You have moved outside of your current Medicare plan’s service area.
- You are moving within your current plan’s service area, but you have new plan options in the new area.
- You are moving into or out of an institution.
- You are leaving a retiree, union, or COBRA group plan.
- You are losing creditable drug coverage.
- Your current Medicare plan stops servicing your area.
- You are enrolled in Medicaid/AHCCCS, or get extra help for Part D.
There are many more special election period events that will allow you to make plan changes. Contact a local, trusted Medicare broker who can help you understand all the complex rules.
HOW TO CHANGE MY MEDICARE PLAN
Contact your local, trusted Medicare broker.