Access to affordable healthcare only becomes more critical for us in retirement. As people age, their healthcare costs generally go up, and that makes the protection that the Medicare program offers vitally important.
Yet Medicare is complicated. That often makes people less inclined to consider all their options when it comes to taking advantage of the full benefits the program offers.
Each year, during the open enrollment period, Medicare allows participants to make changes to their coverage. In 2023, Medicare open enrollment runs from Oct. 15 to Dec. 7, and it's your best opportunity to make changes that could save you hundreds or even thousands of dollars over the course of 2024. If you're a senior, here are four things in particular that you might want to look at during this open enrollment period that could bring you some savings or get you more comprehensive coverage in the coming year.
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1. Switching from traditional Medicare to a Medicare Advantage plan
Many people enroll for traditional Medicare coverage. This simple option provides participants with coverage for their hospital and other inpatient costs through Medicare Part A, and coverage for doctors' visits and other outpatient medical care through Medicare Part B.
But traditional Medicare doesn't cover all of your healthcare costs -- it will be up to you to cover the gaps in its benefits.
To help close those gaps, many older Americans opt to participate in Medicare Advantage plans. These plans, which are offered through private insurance companies, often come with lower premiums and reduced deductibles and copayments compared to traditional Medicare. That said, you might face more restrictions on which doctors and other medical professionals you can use. Nevertheless, for many, the savings from a Medicare Advantage plan can be substantial.
2. Switching from a Medicare Advantage plan to traditional Medicare
Conversely, those who are on Medicare Advantage plans can choose to move back to traditional Medicare during open enrollment. That could be a smart option if you're finding that the restrictions as to which medical professionals you can see for in-network healthcare are more burdensome than you expected. Also, if your Medicare Advantage plan doesn't cover everything you need it to, then returning to more comprehensive traditional Medicare can make sense.
3. Changing between Medicare Advantage plans
Many different private insurance companies offer Medicare Advantage plans, so most people can choose from a long list of such plans. It might be that a plan that met your needs in 2023 won't necessarily be as good for you in 2024, particularly if your current plan made changes to its coverage or if your healthcare needs changed. In that case, a different plan -- whether from the same insurance company or a different one -- could save you money.
It's important to look at more than just the monthly premiums when choosing a Medicare Advantage plan. You'll also want to factor in deductible amounts, copayments, coinsurance amounts, and annual out-of-pocket expense limits. That should help you decide what the best plan for you would be.
4. Making changes to your coverage for prescriptions
If you have a long-term need for certain prescription drugs, you might want to look at getting Medicare coverage for your drug costs. Many of those on traditional Medicare use Medicare Part D prescription drug plans to get that coverage. Some Medicare Advantage plans cover drugs without the need for an additional Part D plan, while others leave that coverage out.
As your other healthcare needs change, you are liable to find that you need additional prescriptions as you get older. It could be that your current plan doesn't cover a newly prescribed drug, while a competing plan might cover more of the medications you use. Open enrollment gives you the opportunity to make a switch to get the best coverage for you.
Don't waste your chance!
Remember, open enrollment only runs through Dec. 7. If you look carefully at your choices, you might be able to streamline your healthcare coverage under Medicare and save yourself a boatload of money in the process.
