It is almost time for Medicare open enrollment to start once again. Medicare open enrollment dates go from Oct. 15 through Dec. 7. Many people will enroll for the first time, and others will change their plans—hopefully for the better. A few will choose original Medicare, but others will select a Medicare Advantage plan. New plans go into effect on Jan. 1.
Anyone with a Medicare or Medicare Advantage plan should become familiar with any changes their insurer intends to implement in the following year. If you do not like the changes or are relying on a particular benefit and they intend to reduce or eliminate it, you may want to change your plan with that company or get a new insurer.
- switching from Medicare to Medicare Advantage—or vice versa and possibly adding Part D and Medigap;
- switching from one Medicare Advantage plan to another—if it is offered in your area;
- switching from your current Medicare Part D to another one; and
- getting enrolled in Medicare Part D if you do not yet have it—you may need to pay higher fees for late enrollment (it is contained in most Medicare Advantage plans).
Increase in Medicare Costs
The exact details of how much of a premium increase will be in 2024 for Medicare will be released sometime this fall. Right now, MedicareResources says it is likely that costs will increase for Part A (for those who must pay it—most people do not). CNET says Part B will increase from $164.90 to $174.80. Deductibles and copays are also expected to increase.The average premiums for Part D will likely decrease. In 2023, Part D costs $56.49, but in 2024, it is expected to be $55.50.
The Differences Between Medicare and Medicare Advantage Plans
When comparing the two types of plans, you will find considerable differences, even though a Medicare Advantage plan provides the same basic coverage as Medicare. They are required to do this, but how they cover it and provide their services will vary. Also, Medicare Advantage plans typically have more services than traditional Medicare, such as wellness visits, vision, hearing, dental, physical fitness programs, and over-the-counter supplements.With Medicare Advantage plans, always look into what they offer for the following year. It is possible that the extra services you were glad they offered one year may not be available in the next. Or, they may offer fewer benefits than they did this year.
Professional Medical Availability
Medicare offers you a much wider coverage area. You can go almost anywhere in the United States and find that most doctors and hospitals accept Medicare. Medicare Advantage plans have limited networks, TrustedSeniorSpecialists says that even if you have a preferred provider organization (PPO) plan that allows you to go almost anywhere, you still can expect to pay higher costs when you get medical care out of the network.The Medigap Option
Medigap is an optional Medicare program that helps reduce deductibles and cost-sharing. You must already have Medicare parts A and B to buy a Medigap policy. You can buy the policy at any time of year, without having to wait for the annual enrollment period.When you choose to drop a Medicare Advantage plan to get Medicare, you must drop the plan and switch within 12 months to get a Medigap policy. After one year of coverage, there is no guarantee you can get Medigap. Also, you could get rejected if you have a pre-existing condition or have to pay higher premiums.
Making Further Changes
After the new year has arrived and your plan of choice has begun, it is still possible to change your mind. USAToday advises against choosing a new plan based on advertisements alone. Many ads are hyped up and sound good—but they are sometimes less than honest.Getting Help Paying for Medicare
Many people who are on Medicare find it difficult to afford the cost. Medicare has a program called Extra Help that can help reduce your costs. In 2024, those who qualify for the program will not pay anything for their drug plan premium or deductibles. Drugs are also reduced in cost.Qualifying for the program requires having a certain income range in 2023. Singles must earn less than $16,600, and married couples cannot earn more than $33,240. Your resources will also be considered, and the only ones looked at will be your bank accounts, retirement accounts, stocks, and bonds. People in all 50 states and the District of Columbia can qualify.
If you are considering changing your Medicare or Medicare Advantage plan during the upcoming open enrollment period, find out if your doctor, hospital, and any specialists you are using are in the new network. When you need a particular medication, make sure it is in the new plan and know what co-payments and co-insurance you will need to pay and what out-of-pocket maximums are involved.
