Should I Switch Medicare Plans Every Year?

Medicare is an essential program that offers health coverage to seniors and certain disabled individuals. Every year during the Annual Enrollment Period (AEP), from October 15th to December 7th, beneficiaries have the opportunity to review and switch their Medicare plans. With myriad options available and various individual health needs, the question arises: should you switch plans every year? Let’s delve into the pros and cons.

Why Consider Switching?

1. Changes in Coverage Needs: As you age, your health needs can evolve. Perhaps you now require specific prescriptions or specialist visits not covered by your current plan. By assessing your plan annually, you can ensure it continues to match your requirements.
2. Plan Alterations: Insurance companies might alter the aspects of their plans, such as monthly premiums, deductibles, or the drugs they cover. What was suitable last year might no longer be optimal.
3. Cost Savings: By comparing different Medicare plans every year, you may find comparable coverage at a lower price.
4. New Offerings: Insurance companies often update their plan options. There could be a new plan on the market that better suits your needs.

Why Not to Switch?

1. Consistency: If you’re satisfied with the care and services provided by your current plan and have had no significant changes in health or medication, staying might make sense. It’s comforting to stick with what you know, especially if you’ve built relationships with healthcare providers.
2. Administrative Hassle: Switching plans may require a bit of paperwork and adjustment. For some, this process can be daunting or cumbersome.
3. Potential for Confusion: With so many plans on the market, evaluating all the options might feel overwhelming. There’s always a concern about missing out on certain benefits or not understanding the fine print.
4. Network Changes: Switching plans might mean changing doctors or specialists if they aren’t in the new plan’s network.

Tips for Making an Informed Decision:

1. Annual Notice of Change (ANOC): If you’re enrolled in a Medicare Advantage or Part D plan, you’ll receive an ANOC every year in September. This document highlights any changes in your plan for the coming year. Review it closely.
2. Assess Your Health and Finances: Consider any significant health changes or financial shifts from the past year. This personal review can guide you in your decision-making process.
3. Consult with a Trusted Advisor: Medicare can be confusing, but you don’t have to do it alone. Feel free to reach out to Ask Claire and one of our licensed advisors can help you make sense of what may work best for you.