Healthcare tends to be a huge expense for retirees, which is why it's so important to put the right coverage in place. And if you're not so thrilled with your existing Medicare coverage, you're in luck.
Each year, Medicare enrollees are given an opportunity to make changes to their coverage during open enrollment, which runs from Oct. 15 through Dec. 7. Now that that period has officially begun, here are some key moves to make.
Image source: Getty Images.
1. Review changes to your current Medicare plan
Whether you have a Medicare Advantage plan or a Part D drug plan in conjunction with original Medicare (Parts A and B), you should know that plans and coverage can change from one year to the next. Now's a good time to review your plan's change notice, which you should have received already.
Pay attention to the ways your costs might be changing under your plan. With Part D, for example, it may be that a drug you take is being moved into a different tier that results in higher out-of-pocket costs for you. Knowing what changes are impacting your plan will help you determine if there's a better one out there for you.
2. Explore options for a new Part D or Advantage plan
Maybe your Medicare Advantage or Part D plan really isn't changing all that much, or at all. You may be inclined to just keep your coverage. But before you settle for your current plan, spend some time researching alternatives.
You never know whether there's a plan out there that offers superior coverage or comes with lower out-of-pocket costs. And remember, even if your Advantage or Part D plan isn't changing, it may be that your needs are changing. You could be starting a new medication and dropping an old prescription, just as one example. So it's always a good idea to compare the plans that are available to you.
3. Think about whether you want to move from original Medicare to Medicare Advantage
You may be used to getting coverage under original Medicare. But if you've encountered a lot of costs this year stemming from services that original Medicare doesn't cover (for example, dental care), then you may want to consider moving over to Medicare Advantage. An Advantage plan might offer a wider range of coverage at a more palatable price tag.
Now that said, one drawback of Medicare Advantage is that you'll be limited to a specific network of providers. If you're someone who splits your time during the year between two different states, then a Medicare Advantage plan may not be great for you. But it's worth looking into one if your costs under original Medicare have been unbearably high.
4. Decide if you should dump Medicare Advantage and stick with original Medicare
Medicare Advantage can be a cost-effective option for some people, but it's not right for everyone. If you're tired of struggling to find in-network providers, then it may be time to switch to original Medicare. If you go this route, you'll have an opportunity to sign up for drug coverage under Part D.
Although you have close to two months to make changes to your Medicare coverage during open enrollment, the reality is that researching plan choices can take time. So one of the best things you can do is start that legwork immediately. The less rushed and stressed you are, the more likely you'll be to put coverage in place for 2024 that serves your needs well without putting too much of a strain on your finances.
