It's That Time Again!

Medicare's 2014 Open Enrollment Period Runs From October 15 - December 7

In just two weeks and two days, the Medicare Open Enrollment period will begin.  For Medicare Beneficiaries, this is the chance to change health and prescription drug coverage for 2014.  Detailed information on 2014 plans will be made available online at www.medicare.gov later this week.

If you are satisfied that your current plan meets your needs for next year, then you will not need to do anything at all.  Watch your mail for the Annual Notice of Change (ANOC) provided by your current Medicare plan, as this Notice shows exactly how your benefits will change starting on January 1st.

Medicare Beneficiaries often inquire if they will have the option during Medicare's Open Enrollment Period to voluntarily dis-enroll from their Medicare Advantage (Part C) plan, so that they can return to Original Medicare and buy a Medicare Supplement (also known as Medigap) policy.  The short answer is yes, but there are a few important qualifications:

• If you want coverage for medicines, you will need to enroll in a Standalone Part D Prescription Drug Plan (PDP) since Medicare Supplement policies do not include drug benefits

• In most cases, you must answer medical questions in order to qualify for the new Medicare Supplement policy (if you have recently been in the hospital, or have had medical services recommended but not yet performed, then you may be precluded from getting a policy)

• If you do qualify to purchase a Medicare Supplement policy, the monthly premium may be much higher as compared to the premium for your Medicare Advantage plan

According to Health and Human Services Secretary Kathleen Sebelius, the average premium of Medicare Advantage plans is projected to increase by $1.64 in 2014 from last year, coming to $32.60.  That is a small price increase, but you also should be on the lookout for benefit decreases.

As regards Standalone Prescription Drug Plans, monthly premiums are likely to remain in the neighborhood of $30 for a basic prescription drug plan. The maximum amount insurance companies can designate as the initial deductible actually decreases by $15 in 2014 (from $325 to $310).  Additionally, the infamous donut hole, or coverage gap in prescription drug coverage, will be reduced by $80 because coverage limits have changed.

The annual enrollment season to make change to Medicare health and prescription drug plans coincides with the scheduled launch of the new ObamaCare health insurance exchanges, yet these are two separate programs and should not be confused with one another.  If you are covered through Medicare, you will not need to purchase anything through the new health insurance marketplaces.

We strongly recommend that Medicare Beneficiaries review their Annual Notice of Change (ANOC), along with their Evidence of Coverage (EOC) provided by the carrier.  A simple change to the plan's drug formulary or to the network could have a big impact.

If you have questions or concerns about your Medicare benefits for 2014, please contact us by phone on 1-866-500-4532 or click here to email us.


Until next time,

Andrew Herman, President
AH Insurance Services, Inc.