Choosing the right Medicare Advantage plan is one of the most important decisions you might make as a senior. Healthcare is a major expense for many retirees, with some spending hundreds of thousands of dollars on it once their careers wrap up.
Now there are different factors to take into account when choosing a Medicare Advantage plan. These should include:
- Cost
- Level of coverage
- Access to providers
The first one is a big one, since you may be on a pretty fixed income during retirement that consists largely of Social Security. The second is important because you want your Medicare Advantage plan to offer the benefits you need to stay healthy. And the third is crucial because if you can't find providers you're comfortable with, you may be inclined to skip out on healthcare services you need.
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If you're not so thrilled with your current Medicare Advantage plan, you should know that you're not necessarily stuck with it until 2024. That's because Medicare Advantage has its own open enrollment period that runs from Jan. 1 through March 31 every year.
During that time, you can make changes to your Medicare Advantage coverage. But if you're unhappy with your existing plan, you'll need to act quickly, since you only have a week to find a better one.
Should you switch your healthcare coverage?
During Medicare Advantage's open enrollment period, you can swap your current plan for another Advantage plan, or you can revert to original Medicare. If you go the latter route, you'll have an opportunity to sign up for a separate Part D drug plan.
You may want to consider switching Medicare Advantage plans if:
- You're paying more than expected under your current plan
- You don't have access to specific benefits you need that other plans are likely to offer
- You're not able to take advantage of the benefits your plan does offer
- There aren't convenient providers in your network, or you're not happy with the care you've received so far
Now if you're torn between moving to another Medicare Advantage plan or opting for original Medicare, here are some key differences:
- Advantage plans cap your annual out-of-pocket spending, whereas original Medicare doesn't
- Original Medicare won't pay for dental cleanings, eye exams, or hearing aids, but many Advantage plans do
- Original Medicare gives you access to a wide range of providers nationwide, whereas Medicare Advantage limits you to a more narrow network
All told, moving to either another Medicare Advantage plan or original Medicare could end up being a better option than your current setup. So if you've been struggling with your Advantage plan since the start of the year, it could pay to jump on the opportunity to set yourself up with different coverage.
That said, don't rush the decision. You do need to act quickly, but at the very least, take the next week to thoroughly research different options as extensively as you can, since the next plan you sign up for will be the one you'll have for the remainder of 2023.
