Every fall, if you’re enrolled in a Medicare Advantage or Medicare Part D prescription drug plan, you’ll receive an important document called an Annual Notice of Change, or ANOC.
It may look like just another piece of Medicare mail, but this is one you don’t want to toss aside. Your ANOC explains what is changing with your current plan for the upcoming year—and those changes could affect both your healthcare and your budget.
Who Sends the Annual Notice of Change?
Your ANOC is sent by the insurance company that provides your current Medicare Advantage or Part D prescription drug plan. It is not sent by Medicare or Social Security.
Insurance companies review and update their Medicare plans each year. Even if you’ve been happy with your plan and nothing has changed with your health, the plan itself may be different next year.
Your ANOC gives you the opportunity to review those changes before deciding whether you want to keep your current plan for the upcoming year.
When Should You Look for Your ANOC?
Medicare plans are required to provide the Annual Notice of Change by September 30 each year.
Depending on your insurance company and your communication preferences, you may receive it in the mail or electronically. I recommend keeping an eye out for it during September and reviewing it as soon as you receive it.
This gives you time to understand what is changing before the Medicare Annual Enrollment Period (AEP), October 15 through December 7.
Why Is the ANOC So Important?
Medicare Advantage and Part D plans can change from one year to the next. Your ANOC highlights the differences between your current coverage and what your plan will look like beginning January 1.
Some of the changes you may see include:
- Monthly premiums
- Deductibles
- Doctor and specialist copays
- Hospital copays
- Maximum out-of-pocket costs
- Prescription drug costs and coverage
- Pharmacy networks
- Additional benefits offered by the plan
- Changes that may affect how you access certain services
Even a plan that worked very well for you this year may not necessarily be the best fit next year.
Pay Close Attention to Prescription Drug Changes
If you take prescription medications, this is an especially important part of your annual review.
Your plan’s drug formulary can change from year to year. A medication may move to a different tier, have different coverage requirements, or cost more than it did previously. Pharmacy networks and prescription costs can also change.
That’s why I recommend reviewing your medications every year rather than assuming that your current drug coverage will remain the same.
What About Your Doctors?
Your ANOC can provide important information about changes involving your plan and its provider network. However, provider participation can also change throughout the year.
If continuing to see a particular doctor, specialist, hospital, or healthcare system is important to you, it’s a good idea to verify that they will continue to participate in your plan for the upcoming year.
What Should You Do After Reading Your ANOC?
If you review your ANOC and are comfortable with the changes, you generally do not need to do anything. As long as your plan continues to be offered in your area, your coverage will typically renew automatically for the new year.
However, if you notice changes that concern you—or you simply aren’t sure how those changes may affect you—that’s the time to review your options.
During AEP, from October 15 through December 7, Medicare beneficiaries can make changes to their Medicare Advantage and Part D coverage for the following year.
Don’t Wait Until December to Review Your Coverage
Every year, I help my clients review their Medicare coverage and understand how upcoming changes may affect them. You don’t have to sort through all of the Medicare information on your own.
When you receive your ANOC, take a few minutes to look through it and make note of anything that concerns you. Then we can determine whether your current plan still meets your needs or whether it makes sense to look at other options.
As a local independent Medicare broker serving Dayton, Kettering, Centerville, Beavercreek and the surrounding Miami Valley, I’m here to help you understand your Medicare coverage and make an informed decision for the year ahead. You can call me at 937-766-1965 or book at https://calendly.com/d/dz9n-zph-qcj/in-office-meeting
