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October 13, 2016
Some might argue that enrolling in Medicare is off the charts painful… It can be so hard to understand… But getting the right coverage can be worth it.
This open enrollment period is for Medicare Advantage and Part D (prescription drug) programs.
If you have a Medigap plan and want to stay with that coverage, then the open enrollment is NOT for you.
However, according to the Boston College Center for Retirement Research, “Advantage plan enrollment is on the rise, because these plans have lower premiums than Medigap plans. But some experts warned in a 2015 blog that Advantage plans have higher potential out-of-pocket costs, despite the lower premiums. A recent blog discusses the pitfalls of Advantage plans.”
We recommend that all Medicare beneficiaries carefully evaluate their covverage EVERY year during the open enrollment period.
If you are not enrolled in Medicare Advantage and have a Medigap plan instead, the first question to consider is, do you like that coverage or do you want to switch to Medicare Advantage. If you want to switch, then you will need to compare your options very carefully.
If you are already enrolled in Medicare Advantage and / or a Part D plan, you want to find out:
If you are already enrolled, your current insurer should send you an Annual Notice of Change (ANOC) or Evidence of Coverage (EOC). These documents should outline changes in your plan’s costs, benefits or rules.
The Medicare Advantage or Part D program you have now, might not be the right program for you next year. These plans change. Your health needs change. It is worth evaluating your coverage every year.
Research shows that people with Medicare prescription drug coverage (Part D) could lower their costs by shopping among plans each year; there could be another Part D plan in your area that covers the drugs you take with fewer restrictions and/or lower prices.
Everyone enrolls in Medicare parts A and B. However, these programs do not cover the vast majority of medical costs.
A supplemental Medicare program can help minimize your total out of pocket health expenditures.
Studies have shown that the total out pocket Medicare costs are higher than the total Social Security income for the average retiree. In other words, Social Security income does not even cover what most retirees will have to spend on their health.
So, figuring out ways to minimize costs and avoid financial ruin from a medical emergency is a worthwhile endeavor.
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