What is Medicare Annual Enrollment Period (AEP)

By McKay Moravick

The Medicare Annual Enrollment Period (AEP) is a crucial time for anyone enrolled in Medicare to review and make changes to their health care coverage. This period allows you to reassess your current plan and decide if it still meets your needs or if it’s time to switch to a different option.

Understanding Medicare AEP

The Annual Enrollment Period is an annual window that provides the opportunity to evaluate and adjust your Medicare plan. Running from October 15 to December 7 each year, it allows you to consider other plans available in your area and make necessary changes to your coverage. Any changes you make will take effect on January 1 of the following year.

Actions You Can Take During AEP

Depending on your current coverage, here are some of the changes you can make during the Medicare AEP:

1. If you have Original Medicare (Parts A & B):
   • Join a stand-alone Medicare prescription drug plan (Part D). Be aware that you may incur a penalty if you don’t have other creditable drug coverage.
   • Make no changes and your current coverage will automatically renew.
2. If you have Original Medicare (Part A and/or Part B) and a stand-alone Medicare prescription drug plan (Part D):
   • Switch to a different Medicare prescription drug plan.
   • Drop Medicare prescription drug coverage entirely (note that a penalty may apply if you decide to re-enroll later).
   • Make no changes and your current coverage will automatically renew.
3. If you have a Medicare Advantage plan (Part C) with built-in drug coverage:
   • Transition from your Medicare Advantage plan back to Original Medicare.
   • Join a stand-alone Medicare prescription drug plan if you switch back to Original Medicare or to a Medicare Advantage plan without drug coverage.
   • Drop Medicare prescription drug coverage entirely (note that a penalty may apply if you decide to re-enroll later).
   • Make no changes and your current coverage will automatically renew.
4. If you have a Medicare Advantage plan (Part C) and a stand-alone Medicare prescription drug plan (Part D):
   • Switch to a different Medicare prescription drug plan.
   • Transition from your Medicare Advantage plan back to Original Medicare.
   • Drop Medicare prescription drug coverage entirely (note that a penalty may apply if you decide to re-enroll later).
   • Make no changes and your current coverage will automatically renew.

Preparing for AEP

To prepare for AEP, review your current health care coverage. In September, you’ll receive an Annual Notice of Change (ANOC) from your plan, detailing any changes for the upcoming year. This document will outline changes in premiums, copays, coinsurance, prescription drug coverage, and other benefits.

Why AEP Matters

The Annual Enrollment Period is an essential time to ensure your health care coverage aligns with your current needs. As your health situation evolves, your plan should change accordingly.

If you have Original Medicare, the AEP is your opportunity to consider if you need additional coverage, such as a Medicare prescription drug plan (Part D). If you’re currently enrolled in a Medicare Advantage plan and wish to return to Original Medicare, this is the time to make that change.

Expert Guidance and Support

At Boettcher Insurance Agency, we have 26 years of experience helping individuals navigate their Medicare options. Our team is here to assist you in making informed decisions during the AEP. Reach out to us for assistance and ensure your health care coverage meets your needs.