Compare Medicare coverage options annually
For Medicare participants, you’re approaching that time of year again: Open Enrollment (Oct. 15 to Dec. 7). During this time frame, you’ll have the opportunity to review your coverage options and make any desired changes to your plan.
Medicare beneficiaries with traditional Medicare can compare and switch Medicare Part D stand-alone drug plans or join a Medicare Advantage plan. Enrollees in Medicare Advantage can compare and switch Medicare Advantage plans, or may possibly be able to elect coverage under traditional Medicare subject to underwriting rules (barring certain exceptions) depending on when you enrolled in a Medicare Advantage plan and how long you have been covered.
An analysis by the Kaiser Family Foundation shows that only a small portion of Medicare participants voluntarily switch plans. This may indicate that beneficiaries are satisfied with their current coverage, but it may also allude to the difficulty of comparing plans, not having confidence in the ability to select a better plan or maybe even an unawareness of the open enrollment period.
The share of Medicare beneficiaries who do not annually review their coverage options is higher among people ages 85 and older, with lower incomes, lower education levels and in fair to poor health.
The marketplace of Medicare private plans operates on the premise that people with Medicare will compare plans to select the best source of coverage, given their individual needs and circumstances. With a large number of Medicare private plan choices available each year, the fact that so many seniors and people with disabilities are not comparing coverage options each year warrants attention, given the potential consequences of these decisions.
While it’s true there are research tools to help you go directly to the various insurance carriers, this can be cumbersome. An important resource you should consider that can save you time and money is a licensed broker who specializes in helping people choose Medicare plans.
Independent, licensed brokers represent several Medicare plan providers, and are not employed by one insurance company. An extensive portfolio of Medicare plans allows a Medicare broker to fit the plan to your specific health care needs, preferences and budget.
You can find Medicare brokers several ways. Ask your trusted advisers such as your financial planner, CPA or estate planning attorney. Ask friends and family if they work with a broker and their experience in doing so.
You can also do an internet search on local Medicare webinars and presentations, or you can search for members of such organizations as the National Association of Health Underwriters or the American Association of Medicare Supplement Insurance (may not offer Medicare Advantage plans).
Loyalty doesn’t pay when it comes to Medicare. Drug plans and Medicare Advantage plans are one-year contracts, so plans can vary significantly from year to year. Be a smart consumer and compare plans rather than simply being re-enrolled in the “same” plan year after year.
Wendy Bennett is a senior financial adviser at Bennett Associates Wealth Management in Butler. Bennett Associates is a registered investment adviser and does not provide any legal, accounting or tax advice. The material prepared is the opinion of the author and for informational purposes.
