Does Your Medicare Plan Renew Automatically Each Year?

Medicare coverage often renews automatically each year, offering peace of mind to beneficiaries. However, it’s essential to understand how the renewal process works for each part of Medicare and what steps you may need to take to ensure your coverage continues without interruption. Here’s what you need to know about Medicare automatic renewal, and how to stay informed about changes to your coverage.

Original Medicare (Parts A and B)

If you’re enrolled in Original Medicare, which includes Part A (hospital insurance) and Part B (medical insurance), your coverage will automatically renew each year. You don’t need to take any action as long as you continue to pay any required premiums. Part A is often premium-free if you or your spouse paid Medicare taxes while working. However, for Part B, most people pay a monthly premium. As long as you meet these payment obligations, your Medicare coverage will roll over year after year without the need for re-enrollment.

Medicare Advantage (Part C)

Medicare Advantage plans, also known as Part C, work a little differently. While most plans renew automatically each year, there are a few exceptions that could require action on your part. Your Medicare Advantage plan might not renew if:

• Medicare cancels its contract with your plan.
• Your insurance company stops offering the plan you’re enrolled in.
• You move out of your plan’s service area.

In these cases, you would need to select a new plan to maintain your Medicare coverage. You can find these changes on your Annual Notice of Change. Otherwise, your Medicare Advantage plan should automatically renew each year as long as the plan continues to be available in your area.

Prescription Drug Plans (Part D)

Like Medicare Advantage, standalone Part D prescription drug plans typically renew automatically each year. However, if Medicare ends its contract with your plan or if your insurance company stops offering the plan, you’ll need to choose a new one to keep your prescription drug coverage.

Just because your Part D plan renews automatically doesn’t mean you should ignore it. It’s important to review the details of your plan each year, especially because premiums, drug coverage, and out-of-pocket costs can change. The Annual Notice of Change (ANOC) that you receive each fall will highlight any changes to your plan, so be sure to read it carefully.

Medigap (Medicare Supplement)

Medigap policies, which help cover out-of-pocket costs for Original Medicare, also renew automatically each year as long as you continue to pay your premiums. These plans are designed to provide continuous coverage, and once you’re enrolled, you can typically keep your plan as long as you wish, provided you remain in good standing with premium payments.

Steps to Take Each Year to Ensure Your Medicare Coverage Fits Your Needs

While automatic renewal makes it easy to maintain your Medicare coverage, it’s still essential to actively review your coverage each year to ensure it continues to meet your needs. Here are the key actions you should take:

• Review Your Annual Notice of Change (ANOC): Each fall, your plan will send an ANOC, which outlines any changes in coverage, costs, or plan details for the upcoming year. This document is crucial for staying informed about adjustments that may affect you, including potential increases in premiums, changes to drug coverage, or modifications to your provider network.
• Take Advantage of the Annual Enrollment Period (AEP): The AEP runs from October 15 to December 7. Even if your plan automatically renews, this is an opportunity to switch plans if your healthcare needs have changed or if you find a plan that offers better benefits or lower costs. Reviewing your options during this period ensures you continue to receive the best care at the best price.
• Watch for Non-Renewal Notices: If your Medicare Advantage or Part D plan is being discontinued, you’ll receive a notice by October. If this happens, it’s essential to select a new plan during the AEP to maintain uninterrupted coverage. Don’t ignore these notices—they give you time to act before coverage lapses.

By taking these steps each year, you’ll ensure your coverage continues to align with your healthcare needs and budget. Medicare’s automatic renewal is convenient, but staying informed can help you avoid unexpected surprises.

Are you ready to make sure your Medicare coverage is working for you? 

Join one of GetSetUp’s Medicare classes to learn more about managing your coverage, understanding your benefits, and making the most of Medicare’s Annual Enrollment Period. Explore all your options today to stay informed and empowered about your healthcare!