All About AEP

AEP. If you have Medicare, you’ve probably heard those three letters mentioned. But what does AEP mean? And more importantly, what does it mean for you? We’re going to cover everything you need to know about Medicare AEP and how you can make the most of it this year.

What is the Medicare Annual Enrollment Period (AEP)?

AEP stands for Medicare’s Annual Enrollment Period. It’s the time each year when you can make changes to your Original Medicare, Medicare Advantage or Part D Drug Plan coverage to better fit your needs.

When is the Medicare Annual Enrollment Period?

AEP runs from October 15th to December 7th every year. Changes made to your coverage during AEP are for the upcoming year and take effect on January 1st.

Who is eligible for the Medicare Annual Enrollment Period?

Everyone currently enrolled in at least Medicare Parts A and B (Original Medicare) can take part in AEP. Without Original Medicare, you won’t be able to join a Medicare Advantage plan. You will also be ineligible to alter or add Medicare Part D prescription drug coverage if you are not enrolled in Original Medicare.

What can I do during the Medicare Annual Enrollment Period?

AEP is meant to help you adjust coverage and plan options for the upcoming year, so you have the right coverage for your needs. Some of the things you can do are:

Enroll in a Part D prescription drug plan
If you’re enrolled in Original Medicare but have not yet enrolled into a drug plan, you can do so during AEP. However, be aware that you might experience late enrollment penalties, depending on how long it’s been since you first enrolled in Medicare. The longer you wait to enroll in a drug plan, the higher the penalty. These penalties are permanent — you will have to pay it for as long as you have Part D coverage.

Change from one Part D plan to another
If you’re already enrolled in a Medicare Part D drug plan, you can drop it and choose another plan during AEP. You might do this if your current plan is changing premiums, copays, deductibles or facility coverage, or if a drug you need is no longer covered under your current plan.

Switch from Original Medicare to Medicare Advantage
If you have Original Medicare, you can choose to switch to a Medicare Advantage plan. Medicare Advantage plans are offered through private insurance companies and may provide additional wellness benefits that Original Medicare doesn’t cover.

Change from one Medicare Advantage plan to another
Your health needs can change from year to year — and so can Medicare Advantage plans. If your coverage is not meeting your needs or you find a plan that’s a better fit for you, you can switch to a different Medicare Advantage plan during AEP.

Drop your Medicare Advantage plan and go back to Original Medicare
Perhaps you decide that Medicare Advantage isn’t right for you, and you would like to return to Original Medicare. During AEP, you can drop your Medicare Advantage plan and switch back to having Parts A & B on their own, with the option to add a Medigap plan and/or Part D drug coverage.

How will I know if I should change my coverage?

If you're on a Medicare Advantage or Part D plan, in September, your insurance company sends out an Annual Notice of Change (ANOC). This important document outlines any changes to your plan that will take effect in the upcoming year. Be sure to review the ANOC carefully and check that your plan still meets your needs. The ANOC is a valuable resource to help you know if you need to make changes during AEP.

Are there any other times I can make changes to my plan?

The Open Enrollment Period (OEP) that runs from January 1st to March 31st each year is the other key time to make changes to your Medicare coverage. However, your options are more limited during OEP — you can switch from one Medicare Advantage plan to another, but you can’t enroll into a Medicare Advantage plan if you don’t already have one. You can also take advantage of the Special Enrollment Period (SEP) in the event that you move outside of a plan’s coverage area — this can take place at any time during the year. Other SEP-eligible events include moving into a long-term care or skilled nursing facility, moving back to the US after living outside the country, Medicare terminates your plan's contract, being diagnosed with a chronic medical condition or you've lost your employer group coverage.

How do I make changes during the Medicare Annual Enrollment Period?

You can review plans online at the official Medicare website. However, we recommend working with a licensed insurance agent. An agent can learn about your needs, guide you through the complexities of Medicare and help you find coverage available in your area that’s right for your specific needs.

Conclusion

AEP is one of the most important times of the year for Medicare beneficiaries. Other than when you first sign up for Medicare, it’s the time when you have the most coverage options available to you. That’s why it’s so important to make the most of each AEP by doing a yearly coverage review with a licensed insurance agent to make sure you’re getting the coverage you need and the benefits you deserve. Give us a call for a consultation and review of your options for the upcoming year.

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