3 Reasons to Prepare for Medicare Annual Election Period (AEP)

Most Medicare recipients are acutely aware of the Annual Election Period known as AEP that runs from October 15th to December 7th every year.. The phone calls, the mail ads, and TV make it practically impossible to ignore. Do you really need to change your plan every year? Once you enroll in a plan, can’t you just stay with it?

The short answer is yes, but nothing is ever that simple. While you and your health situation may not change, the way you’re covered by a plan might. Here’s why.

1-Politics.

With health care front and center in the political arena, changes in legislation can effect plans and providers on both Federal and State levels. While your insurance carrier must keep up with all these changes, and even inform you, it doesn’t mean the adjustments made are in your still in your best interest. Knowledge is power and while you may not be a political dynamo, your insurance broker spends all year keeping up with the nuances that ebb and flow through their industry.

2-Big Business.

As health industries scramble to predict what may come next from the public sector, it’s still business as usual at brawling over market share - including constant mergers and acquisitions. In the last year we’ve seen pharmacies merge with insurance plans, provider networks switching contracts en masse, and hospitals practically eating each other alive. All of this movement can impact your coverage. If a new provider network comes to your town, you may not have doctor to GO TO, even if you’re covered. . You should always take the time to review your current plan, it;s costs, and inquire with your provider or your insurance broker about possible changes that may effect your coverage and health care when you need it most.

3-More Money.

The root of all political and business motivation is to make money. While large companies always seem to being trying to take yours, the inter-industry squabbling can definitely work towards consumer advantage. In 2018, we saw the battle of the $0/$0/$0 plans. How will they complete from there?

The answer is formularies and ancillary benefits. Insurance companies change their formularies every year. They re-price, re-tier, and make adjustments that may or may not work in your favor. At the very least, an inquiry with your insurance broker regarding your prescription coverage for the following year will prevent any surprises at the pharmacy. They might even be able to SAVE you money.

Another emerging trend to compete are the ancillary benefits - gym memberships, transportation, weight loss plans; there’s even scuttlebutt about groceries being the next thing to provide to seniors in their insurance plans.

Be Prepared.

You already dislike the idea of changing your plan every year. No one wants to change their doctor that frequently. So, why would you change your insurance broker every year? Maintaining an ongoing relationship with a trusted insurance broker will help make these seasonal inquires much more efficient. Keeping them apprised of issues and concerns you have throughout the year can even help them anticipate the best plan changes for you (if any) every year.