What Do I Need to Do During Medicare Open Enrollment?
It’s challenging to avoid the Medicare advertisements that saturate television during fall months, when insurers compete for beneficiaries’ attention during the yearly enrollment window. This period, running from October 15 through December 7, allows more than 63 million Medicare beneficiaries to select a new Medicare Part D drug plan, choose a new Medicare Advantage plan, or transition between Original Medicare and Medicare Advantage coverage.
Any modifications to coverage made during this enrollment window take effect on January 1, 2022. According to recent reporting, most beneficiaries maintain their existing coverage. Research from the Kaiser Family Foundation indicates that approximately seven of ten Medicare beneficiaries failed to compare plans during the 2018 open enrollment period–the most recent data available.
This tendency represents a potential missed opportunity, despite the tedious nature of reviewing insurance options. Even when coverage remains unchanged, individual circumstances may shift. Let’s examine what’s new for Medicare Advantage first.
Medicare Advantage Plans
Medicare Advantage serves as an alternative to Original Medicare, providing benefits unavailable in traditional coverage, including restricted dental and vision coverage. Most Medicare Advantage plans incorporate prescription drug benefits, with some offering additional perks like meal delivery and transportation services for eligible members.
The average 2022 Medicare Advantage premium will be $19 per month, down from $21.22 in 2021. Many plans charge no premium at all, potentially making Part C more economical than Original Medicare combined with optional Part D drug coverage and Medigap supplements.
However, this affordability comes with trade-offs. Many Medicare Advantage plans operate as HMOs with restricted provider networks, limiting your choice of doctors and hospitals. Original Medicare, by contrast, permits you to visit any Medicare-accepting provider nationwide.
Before switching from Medicare Advantage to Original Medicare and purchasing a Medigap supplement, understand that Medigap plans require medical underwriting. Insurers review your health history and may deny coverage or charge higher premiums based on existing conditions. Research thoroughly and verify coverage availability before abandoning your current plan.
Medicare Part D Drug Plans
Part D represents standalone drug coverage designed to help offset medication expenses. The average 2022 Part D premium will be $33 monthly, slightly increased from $31.47 in 2021. Look beyond premiums at total costs, as higher-premium plans sometimes offer superior prescription coverage, resulting in lower overall expenses.
Consider your pharmacy selection as well. If you’ve switched pharmacies and your new provider isn’t preferred within your plan, costs will likely increase.
If you are approaching or in retirement and facing complex financial and estate planning decisions, contact our office today to schedule a consultation with attorney Trey Stegall.
