Key Things to Review as Medicare Open Enrollment Begins

Over the years, I’ve found that many retirees are surprised by how much Medicare coverage can shift from one year to the next. That’s why I encourage clients to treat Medicare Open Enrollment as an annual review, not something to leave on autopilot.

Open Enrollment runs from Oct. 15 through Dec. 7, and the choices you make, or fail to make, during that period will determine your Medicare coverage for the next plan year. Even if your current plan has worked well, it is wise to take another look every year. Healthcare costs, provider networks and prescription drug coverage can all change, and a plan that fit your needs before may not be the best match going forward. Reviewing your options now can help ensure your coverage still aligns with your needs, lifestyle and budget.

Begin with Four Important Questions

Are you paying the right price? Healthcare costs continue to climb, and Medicare plans are no exception. Compare your current premiums, deductibles and copays with what is available for the upcoming year. Many retirees have saved hundreds of dollars a year simply by reviewing options instead of allowing coverage to renew automatically. Even a small monthly difference can add up over the course of a year.

Can you still see the doctors you trust? If you have established relationships with doctors or other providers, make sure they remain in your plan’s network. Physicians change practices, health systems and office locations, and network participation can also change from year to year. It is better to confirm coverage before you need care.

Are you missing any supplemental benefits? Dental, vision, hearing care and wellness programs can vary widely from one plan to another. If there are benefits you would use but do not currently have, Open Enrollment is a good time to look for alternatives that may offer more value.

Is your prescription drug coverage meeting your needs? The premium is only part of the story. Review the medications you take now, along with any you may reasonably expect to need in the coming year. Drug formularies change regularly, and some people stay in the same plan for years only to discover they are paying far more than necessary for medicines they take every month.

One Change to Watch

A federal program that has helped keep Medicare Part D premiums lower for many beneficiaries appears to be winding down. While the exact effect will depend on the plan and location, some retirees could face higher prescription drug costs as insurers adjust to changing funding levels.

For that reason, this year’s Open Enrollment may deserve extra attention. Even if you have been satisfied with your current coverage, reviewing your options could help you avoid surprise cost increases and find a plan that better fits your needs.

Don’t Wait Until the Deadline

Reviewing Medicare coverage is not something most people can do in just a few minutes, and it is easy to delay. But the earlier you start, the easier it is to compare your choices without the pressure of a looming deadline. A financial advisor can help you think through the tradeoffs, estimate potential costs and align your healthcare decisions with your broader retirement goals.

Medicare.gov, “Open Enrollment”. medicare.gov/health-drug-plans/open-enrollment
The Wall Street Journal, “Trump Administration to End Medicare Drug Plan Subsidy”.