Reviewing your health insurance coverage is probably somewhere down there with doing your taxes as one of the least enjoyable ways to spend an afternoon. But when you experience a major health crisis, knowing that you've got a plan that covers all your important needs at the most affordable price can be a huge stress reliever.
The annual Medicare Open Enrollment period is just around the corner. It's usually the only time of year you can change your coverage, so you definitely don't want to miss out. Start preparing by doing the following four things right now.
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1. Know the key open enrollment dates
The annual Open Enrollment period runs from this coming Oct. 15 to Dec. 7. If you select a new plan during this time, your coverage will begin on Jan. 1, 2026. Those enrolled in a Medicare Advantage plan may change plans or switch to Original Medicare between Jan. 1, 2026 and March 31, 2026. Their coverage will begin on the first of the month following the new plan election.
If you miss this window, you usually have to wait until next year's Open Enrollment period to make plan changes unless you're eligible for a Special Enrollment Period. To qualify for one of these, you typically must have an exceptional circumstance, like:
- Changing where you live
- Losing your current health insurance coverage
- Becoming eligible for new health insurance coverage
- Your existing plan changes its contract with Medicare
You can view a complete list of circumstances that qualify you for a Special Enrollment Period on Medicare.gov.
2. Review your current health insurance plan
If you're currently on Medicare, you should have gotten your plan's Annual Notice of Change (ANOC) by the end of September. This gives you a breakdown of what's changing with your plan for the next calendar year. If you haven't received yours by Sept. 30, reach out to your plan provider to request it.
Look this over and get a copy of your current health plan information for this year. Start making a list of what you like and don't like about your current plan, including costs, coverage, and customer service.
It's also a good idea to make note of any other resources you have at your disposal for covering your retirement healthcare costs. For example, if you saved money in a health savings account (HSA) in previous years, you can use this money to pay for your Medicare premiums and deductibles or any out-of-pocket medical expenses that come up. When used on qualifying medical expenses, HSA withdrawals are tax-free.
3. Make a list of your most important health insurance needs
Armed with the information you gathered from the last list, make a note of all your must-haves in a health insurance policy, including:
- Providers you work with, including specialists
- Medications you're currently taking
- Coverage for medical procedures you expect to have next year
When it comes to cost, you also want to consider whether you prefer a plan with a low deductible or a high deductible. Higher deductibles typically bring lower premiums, so a high-deductible plan can work well for those who don't anticipate a lot of medical expenses in the coming year. Those who expect they will have a lot of medical bills might prefer a plan with a lower deductible, even if it means higher premiums.
4. Understand the different plan types available to you
When most people think of Medicare, they think of Original Medicare, which consists of Part A (hospital insurance) and Part B (medical insurance). But there are other plan types you'll likely encounter as well, including:
- Medicare Advantage plans: Medicare Advantage plans, also known as Part C plans, are plans offered by private health insurers that cover everything in Original Medicare and some extras as well. Some people like the simplicity of having just one plan to worry about.
- Part D plans: Medicare Part D plans cover prescription drug costs. These are also offered through private insurance companies and have their own expenses.
- Medicare supplement plans: Medicare supplement plans, also known as Medigap plans, are intended to supplement Original Medicare. These are separate policies that cover certain procedures and treatments that Original Medicare doesn't.
It's worth reviewing all of your options to see which offers you the most coverage at a price that best fits into your retirement budget.
Once the Open Enrollment period begins, it'll be time to compare coverage options. Having laid the groundwork with the steps above, it shouldn't be too difficult to rule out plans based on the criteria you've decided are most important to you. If you have any questions about a particular plan, you can always contact the plan administrator for more information.
Though it might be tempting to put it off, don't wait until the end of the Open Enrollment period to make a change. Get started right away so you have plenty of time to compare all your options.
