15 Things You Need to Know About Medicare Open Enrollment

Many seniors rely on Medicare for their healthcare needs. And that's why it's important to take full advantage of open enrollment. Here's what you need to know about the program's annual open enrollment period.

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Medicare open enrollment starts on Oct. 15 and wraps up on Dec. 7. All told, you have a nice amount of time to review your coverage choices and make changes accordingly. Also, open enrollment happens at the same time every year, so if you've done this before, there shouldn't be any surprises.

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You might have until early December to make adjustments to your Medicare coverage. But life might get busy, and if you wait too long, you could end up running out of time. A better bet is to start reviewing your coverage choices in October.

If you've yet to sign up for Medicare, open enrollment isn't for you. Rather, during open enrollment, existing enrollees get to make changes to their coverage. Meanwhile, if you're new to Medicare, your initial enrollment window will be based on when your 65th birthday falls.

ALSO READ: When Can I Sign Up for Medicare?

The changes you put in for during open enrollment won't kick in right away. You'll have to wait until 2023 for them to take effect. If you're unhappy with your current Medicare plan, it means you'll unfortunately have to deal with it until the end of the year.

If you're enrolled in original Medicare, you need prescription drug coverage to go along with it. And that's where Part D comes in. Meanwhile, open enrollment is a great opportunity to change from one Part D plan to another if you feel there's a better option.

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It may be that you're happy with your current Part D drug coverage. But what if your plan has changed? All Medicare plans are required to send out change notices in time for open enrollment, so you should have a chance to see if your coverage is changing for the worse.

ALSO READ: Medicare Part D Premiums Are Expected to Drop in 2023 -- but Seniors Shouldn't Celebrate Just Yet

Maybe your Part D plan isn't undergoing changes. But if you're on new medications, it could make sense to swap your current plan for a new one. Doing so could mean lowering your co-pays.

Some seniors get coverage through Medicare Advantage, an alternative to original Medicare. If you're not thrilled with your Advantage plan, you can make a change during open enrollment. In fact, it pays to see what other Advantage plans are available in your area, as some of these plans have been adding benefits that may be appealing to you.

ALSO READ: Enrolling in Medicare Advantage for the First Time? 3 Things You Need to Know

If you sign up for a new Part D drug plan during open enrollment and end up not liking it, you may be stuck with it for all of 2023. But that won't be the case if you opt for a new Medicare Advantage plan. That's because Medicare Advantage has its own open enrollment period that runs from January through March each year, during which time you can dump a new plan and switch to another one, including your old one.

If you've been on Medicare Advantage and it isn't working for you, you have an opportunity to move over to original Medicare during open enrollment. If you go that route, you'll need to sign up for a Part D drug plan as well. Make sure you leave yourself with enough time to take that added step.

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Even if you've never signed up for Medicare Advantage before, you can still move over to it from original Medicare during open enrollment. And doing so could end up being a money saver. That's because most Advantage plans cover some key services that original Medicare doesn't, like dental, vision, and hearing aids.

Just as Part D drug plans have the potential to change from one year to the next, so too do Medicare Advantage plans. And like Part D, your Advantage plan is required to notify you of changes. That way, you can decide whether it makes sense to keep your existing coverage or switch things up.

Medicare has a plan finder tool on its site that makes it easier for you to sort through your choices. The tool works for both Advantage and Part D drug plans. And it helps you find plans based on your ZIP code so you don't waste your time looking at plans that aren't available in your area.

Medicare uses a rating system that helps you compare your choices for Part D and Advantage plan coverage. Plans are rated by stars, with five being the highest. The higher a plan's rating, the more satisfied enrollees seem to be with it overall. That could give you some comfort and guidance as you try to figure out which plan is best for you. And given how substantial an expense healthcare can be, that's an important thing.

ALSO READ: 64% of Workers Worry About Affording Healthcare in Retirement. Do This if You Feel the Same

Older Americans are often targeted as financial scam victims. During open enrollment, you may get a call, email, or text offering you a discounted rate on your Medicare plan. Don't buy it, and whatever you do, do not pay any money or give out your credit card or banking information to someone who solicits you out of the blue.

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The moves you make during open enrollment could spell the difference between superior coverage in 2023 or not. They could also spell the difference between saving money on Medicare coverage versus paying more. Therefore, be sure to assess your choices carefully once open enrollment kicks off.

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