Medicare beneficiaries have the opportunity to review their health and prescription drug coverage each year during the Annual Election Period (AEP). This is a time when you can make changes to your plan, or switch plans altogether. However, you may be wondering if you have to renew Medicare during AEP. In this blog post, we will answer that question and provide more information about what happens if you do not renew your Medicare plan.
What If I Want to Keep My Medicare Coverage the Same?
If you want to keep your Medicare coverage the same, you do not need to do anything during AEP. Your coverage will automatically Renew Medicare for the next year. However, it is still a good idea to review your plan during AEP. This will allow you to make sure that your plan is still the best option for you and that there have been no changes to the coverage. It is very important to review your Annual Notice of Change Letter before you decide to stay with your plan.
What Happens If I Do Not Renew Medicare?
If you do not renew your Medicare plan, you will be disenrolled from the plan. This means that you will no longer have coverage through that plan. You may be able to enroll in a new Medicare plan during the next enrollment period, but you will likely have to pay a late enrollment penalty. This is because Medicare plans are only available during specific enrollment periods.
What If I Only Have Original Medicare?
If you only have Original Medicare, you do not need to renew your plan. Your coverage will automatically renew each year. However, it is still a good idea to review your coverage during AEP. You may want to find a more comprehensive Drug plan. Or you may want to check to see if you can find a less expensive drug plan. Also if you decide that you want to maybe look into getting into an Advantage Program, this would be the time to do so.
Ask Yourself: Is There A Change to My Healthcare Needs?
Things change in life, and some changes may affect the kind or amount of health care you need. For example:
- A new diagnosis might mean more doctor visits or new medications
- An advancing illness may increase the number or length of hospital stays or require home care
- Additional medications may be needed to manage chronic conditions such as diabetes, arthritis, or heart disease
- Maybe you have a planned surgery coming up.
These examples are things you be thinking about when making decisions that could impact your health care needs for the future and the treatments you be needing
Ask Yourself: What Benefits do I Not Have That I Need?
Medicare Part D and Medicare Advantage plans may change costs and coverage from year to year. You may have some new medications this year that you didn’t take last year. You may have lost the benefits you loved and that’s why you’re shopping around. Or, you may have never had them in the past and you want them now. In either case, make a list of the health benefits you want such as dental, vision, or hearing coverage. Once you have your list, now you know what kind of plan you should look at when you Renew Medicare and what benefits it must have.
Ask Yourself: How Much Can I Afford To Spend?
It may seem like a scary question to answer but it’s an important one. Take some time to look at how much you spent overall on health care costs and medications throughout the year. Then, you can look at different plans and how their cost-sharing works for each. Compare plan costs by taking a look at your current health needs and trying to estimate how much you may spend in the year to come. This will help you get an idea of the financial responsibility each plan may come with and if it will fit your lifestyle and budget.
Remember to Give Yourself Time to Decide
The Medicare Annual Enrollment Period runs October 15 through December 7. This is the only time each year anyone with Medicare coverage can make a change (outside of some special periods just for Medicare Advantage and Part D beneficiaries).
Automatic renewal is a great way to go if you feel confident that the coverage you already have will fit your needs going forward. It’s easy and convenient – but once open enrollment is over on December 7, your chance to Renew Medicare or change coverage for next year is over, too, unless you move or otherwise qualify for a special enrollment period. You get to choose the Medicare coverage that you think best fits your needs each year during this time. You may choose to let your current coverage renew. Or you may choose something different. The important thing is to choose.
So if you are not sure what you want to do. Or if you are not sure what is out there. Give us a call and we can point you in the right direction. We are also just a click away.