How to Review and Update Your Medicare Plan Annually – Tips for Seniors
As you get older, your healthcare needs may change. That’s why it’s so important to keep your Medicare coverage up-to-date.
Reviewing your plan each year is a great opportunity to make sure your current Medicare coverage is still the right fit for both your health needs and budget.
At Senior Insurance Agency, we help beneficiaries navigate the Medicare renewal process and better understand the plans available to them. In this blog, we’ll take a look at how to review your plan annually and how to change Medicare plans when you need to.
Table of Content
1. Why Annual Reviews Are Important
2. Important Areas to Review in Your Current Medicare Plan
3. How to Review and Update Your Medicare Plan
4. When Can You Make Changes?
5. Common Mistakes to Avoid When Reviewing Your Plan
6. Renew or Change Your Medicare Plan With Senior Insurance Agency
Why Annual Reviews Are Important
Many people find that their healthcare needs change from year to year, which means their insurance needs change along with them.
For example, you might get injured and require ongoing physical therapy, causing you to need more extensive healthcare coverage. This could mean switching to a new Medicare Advantage plan or Medicare supplement to get the coverage you are looking for.
It’s also important to note that Medicare plans can change, resulting in new monthly premium amounts, benefits, provider networks, and out-of-pocket costs. Even Original Medicare coverage gets updated over time as a result of new legislation.
In some cases, switching your Medicare plan can help you save money on monthly premiums, copays, or other healthcare costs. You’ll need to review all available options to determine which health plan offers the best balance of coverage and cost savings.
Important Areas to Review in Your Current Medicare Plan
When conducting a Medicare plan update, there are several key factors to consider, including:
Coverage
Senior Insurance Agency can help you compare potential plan options from the 21 insurers who offer Medigap plans in Nevada.
The first thing to consider is covered services under your current Medicare plan. For example, if you are frequently paying out-of-pocket for services you need, you might consider switching to a different plan that covers those services.
While Original Medicare coverage is the same for all beneficiaries, Medicare Advantage, Medigap, and Part D prescription drug coverage can vary by insurance company and specific plans.
Costs
The next factor to consider is whether or not your insurance coverage aligns with your budget. If your healthcare costs or the plan’s premiums are so expensive that it becomes difficult to pay for other necessities, it may be time to switch to a different plan.
Provider Networks
Many people prefer to see specific doctors or healthcare providers. Consider whether your current coverage gives you the flexibility you’re looking for when choosing healthcare services.
Approximately 98% of providers participate in Original Medicare, according to the Centers for Medicare and Medicaid Services. Providers do not need to be in a specific network to accept Original Medicare and Medigap Plans
However, many Medicare Advantage Plans and prescription drug plans only work with providers and pharmacies within a specific network, as they are run by private insurance companies.
Prescription Drug Coverage
Another key factor to consider is whether your prescription drug coverage is sufficient for your current healthcare needs. Evaluate how much you’re currently spending on prescriptions and if there are options that could help you save money.
If you have Original Medicare, you’ll need to purchase a standalone Part D plan to get prescription drug coverage. Alternatively, you can purchase a Medicare Advantage plan that includes prescription drug coverage.
Update Your Medicare Plan Today
How to Review and Update Your Medicare Plan
When the Medicare annual enrollment period approaches, you need to be prepared. Here’s how to renew Medicare plans or switch to a new plan as needed.
(1) Gather Your Information
Start by making sure you have all your medical insurance documents on hand. This includes your current policy’s coverage details, a list of current medications, your Medicare ID card, and your provider information.
Plan Comparison
The next step is to compare plans, reviewing both your current plan and alternatives to see what’s out there.
We recommend working with a professional Medicare agent for this step in the process, as it can be confusing and overwhelming to do on your own. Professional agents are familiar with all the options currently on the market and will ensure you don’t overlook anything.
(3) Evaluate Your Health Needs
Consider what has changed in your health over the last year. Have you gotten injured or developed any chronic conditions? Alternatively, has your health improved over the past year? Look for health coverage that matches your current needs.
(4) Consider Financial Changes
Think about how your budget has changed over the last year, as well as any upcoming financial responsibilities you have. For example, you may have retired, changed residences, or purchased a new vehicle, all of which could change your healthcare budget.
(5) Consult With A Knowledgeable Insurance Agent
If you haven’t already, reach out to an insurance agent with Medicare experience. They will help answer your questions, and if you decide to make changes to your plan, they will guide you through the process.
When Can You Make Changes?
If you decide to make changes to your plan, you can do so during the Medicare annual enrollment period, which is from October 15th through December 7th.
If you’re changing your plan for the first time, keep in mind that this is different from the initial enrollment period you used when signing up.
During this period, beneficiaries can switch from Original Medicare to a Medicare Advantage plan. You can also switch your Medicare prescription drug plan if you have standalone Part D coverage.
Do I need to renew my Medicare every year? In most cases, if you don’t switch plans during the enrollment period, your coverage will automatically renew for the next year in most cases.
The Medicare Advantage open enrollment period is from January 1st to March 31st. During this time, you can make a one time switch between Medicare Advantage plans or switch to Original Medicare.
Review and Refresh Your Medicare Plan
Common Mistakes to Avoid When Reviewing Your Plan
When conducting your yearly Medicare review, there are a few key mistakes to avoid.
First, don’t assume that your plan will stay the same next year, especially if you’re working with a private insurance company. Even if your healthcare needs haven’t changed, your insurance provider may change what they cover.
Additionally, don’t focus entirely on monthly premium costs when assessing your plan’s financial impact. Factors like your deductible, copays, and other out-of-pocket costs can affect your budget just as much.
Finally, don’t ignore prescription drug costs. Recurring prescriptions can quickly become very expensive, and even if you don’t have prescriptions now, you may need them in the future.
Renew or Change Your Medicare Plan With Senior Insurance Agency
New Medicare plan options are released on October 1st each year. We recommend getting in touch with a senior insurance agent and booking an appointment early in the enrollment period to ensure you have time to make your decision.
If you’re looking for health insurance agents in Reno, NV, Senior Insurance Agency is here to help. Our agents have extensive experience navigating the Medicare system and will help you navigate the ins and outs of the enrollment process, whether it’s your first time or you’ve been on Medicare for years. Get in touch today to schedule a consultation.