This is the season for football, corn harvesting, leaves turning, and for those of us on Medicare: The Annual Enrollment Period (AEP). This is your chance to review and change your Medicare coverage to ensure it continues to meet your healthcare needs and budget for the year ahead. Running from October 15 to December 7, the AEP can feel overwhelming, but a little preparation can go a long way.
Understanding Your Options
First, it’s crucial to understand what you can and can’t do during this time. The Annual Enrollment Period is for making changes to your Medicare Advantage (Part C) and Medicare Part D (prescription drug) plans. If you are happy with your current plan and it’s still being offered, you don’t need to do anything—your coverage will automatically renew. However, even if you’re satisfied, it’s a good idea to review your options, as plans can change from year to year.
During the AEP, you have the opportunity to:
- Switch from Original Medicare (Parts A and B), to a Medicare Advantage plan.
- Switch from a Medicare Advantage plan back to Original Medicare.
- Switch from one Medicare Advantage plan to another.
- Leave a Medicare Supplement (Medigap) Plan, or a Cost Plan, and move to a Medicare Advantage Plan.
- Join, change, or drop your Medicare Part D prescription drug plan.
The choices you make during this period will (generally) become effective on January 1, 2026.
It might also be helpful to know that, in certain circumstances, at any time of year, changes can be made within Medicare Supplement or Cost coverage strategies.
Your Annual Notice of Change (ANOC)
Your Medicare Advantage or Part D plan is required to send the Annual Notice of Change (ANOC) to you every September. It outlines all the changes coming to your current plan for the next year, including adjustments to premiums, deductibles, copayments, and the list of covered prescription drugs.
Reviewing your ANOC is the first step in your decision-making process. Are your monthly premiums going up? Is your doctor still in the plan’s network? Have any of your prescriptions been moved to a higher cost-sharing tier or removed from the plan’s formulary altogether? These are key questions to ask as you evaluate whether your current plan is still the best fit.
Assessing Your Healthcare Needs
Think about the past year and your healthcare needs. Have your prescriptions changed? Have you been diagnosed with a new condition that requires you to see a specialist? Have you had any major health events that might alter your needs in the coming year?
With rising healthcare costs projected for 2026, it’s particularly important to consider your budget. Medicare Part B premiums and deductibles are expected to increase, as are Part D deductibles and out-of-pocket spending limits. It may be a good time to explore different plans and strategies to find one with a more favorable cost structure for your situation.
Tools and Resources
Navigating all the different plan options can be daunting, but you don’t have to do it alone. The official Medicare Plan Finder tool on Medicare’s website is a potentially helpful resource. Another way to turn to the government for help is through the State Health Insurance Assistance Program (SHIP).
A third option is to work with a licensed, experienced broker of Medicare products. A good broker-advisor will look at your needs, situation, and current plan and then discuss options with you. It may be that your current plan is best… or there may be a different strategy that will serve your needs more effectively. Your premiums will not increase if you work with a broker. And most broker-advisors do not charge clients for their services.
Don’t wait until the last minute! Take the time now to review your current plan and explore your options. By being proactive, you can ensure your Medicare coverage in the coming year is the right fit for your health and financial needs.
Stefan Johnson helps people choose Medicare Advantage, Supplement, Cost, and Prescription Drug plans. He is licensed in Iowa, Wisconsin, Illinois, and Minnesota and represents several companies providing Medicare-related products. He can be reached at 563-581-9341 or sj@retiringease.com.
This article was originally published in CHOICES For Fifty Plus, a Dubuque area magazine for people that are 50 and older. Single copies are available at Dubuque area newsstands or click here to read the digital version of the latest issue.
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