11/18/2024
Week 4 - Open Enrollment is upon us
Today's topic is biggest mistakes people make during the annual Medicare enrollment period.
1. Not Reviewing your Current Coverage
Many seniors assume their existing plan will remain the best option for the next year without considering changes. However, Medicare Advantage and Part D prescription drug plans often adjust their premiums, deductibles, formularies, and provider networks.
Impact: This can lead to unexpected increases in costs, loss of coverage for preferred doctors, or restricted access to needed medications.
How to avoid it: Review the Annual Notice of Change (ANOC) sent by insurers and compare the plan’s benefits and costs with other available options.
2. Choosing Plans Based Solely on Premiums
A low monthly premium might seem attractive, but it doesn’t reflect the total cost of healthcare. Higher deductibles, out-of-pocket maximums, or limited networks can result in higher overall expenses.
Impact: Seniors may face unexpected costs for prescriptions, specialist visits, or hospital stays.
How to avoid it: Evaluate the total cost of coverage, including premiums, copayments, coinsurance, deductibles, and maximum out-of-pocket limits. Check if preferred providers and pharmacies are in-network.
3. Overlooking Prescription Drug Coverage
Some seniors choose a Medicare Advantage plan or stick with Original Medicare without properly evaluating their prescription drug needs. They may assume their medications will still be covered or fail to consider the plan’s formulary and coverage tiers.
Impact: This can lead to high out-of-pocket costs, penalties for not enrolling in a Part D plan, or gaps in medication coverage.
How to avoid it: Create a list of current medications and compare Part D plans or Medicare Advantage plans that include drug coverage. Use Medicare’s Plan Finder tool to assess costs and coverage.
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