10 Common Mistakes People Make During Medicare's Annual Enrollment Period (AEP)

The Medicare Annual Enrollment Period (AEP) is a critical time for anyone on Medicare to review their coverage options and ensure they have the best possible plan for the upcoming year. Unfortunately, many people make mistakes during this time that could lead to costly consequences or inadequate coverage. Here’s a breakdown of some common mistakes and how you can avoid them.

10 Common Mistakes to Avoid During AEP

Mistake #1: Not Reviewing Your Current Plan and Options

One of the biggest mistakes people make is automatically renewing their current plan without reviewing whether it still fits their needs. Health needs change over time, and so do Medicare plans. Your plan from last year may no longer cover the services or medications you need, or a new plan may offer better coverage. Take time to use comparison tools to review your current plan and explore your options.

Mistake #2: Ignoring the Annual Notice of Change (ANOC)

Each year, your Medicare plan sends out an Annual Notice of Change (ANOC), which outlines the changes to your plan for the upcoming year. Ignoring this document can lead to unwelcome surprises, such as higher premiums or reduced coverage. Make it a priority to read this document thoroughly and note any changes in your plan's cost or coverage.

Mistake #3: Focusing Only on Premiums

Many people choose a plan based on the premium alone, thinking that the cheapest option is always the best. However, a low-premium plan might come with higher out-of-pocket costs, such as deductibles, copays, and coinsurance. Instead of just looking at the premium, make sure to factor in all potential costs to ensure you're getting the best overall coverage.

Mistake #4: Relying on Someone Else's Recommendation

Medicare is highly individualized. What works for your spouse, neighbor, or friend might not work for you. Your healthcare needs, medications, and provider preferences are unique, and your Medicare plan should be tailored to meet those needs. It's important to do your research and choose the plan that fits you best.

Mistake #5: Missing Enrollment Deadlines

The AEP runs from October 15 to December 7 each year. Missing this deadline means you could be stuck with a plan that no longer works for you, or worse, you could be left without coverage. Be sure to mark your calendar and start reviewing your options well before the deadline to avoid last-minute stress.

Mistake #6: Not Checking If Your Doctors and Medications Are Covered

One of the most important steps during AEP is making sure your preferred doctors are in your plan's network and that your medications are on the plan's formulary. If you skip this step, you could end up with higher costs or, in some cases, without access to the care or medications you need. Many Medicare Advantage plans and Part D drug plans change their provider networks and formularies each year, so it's essential to double-check.

Mistake #7: Failing to Compare Plan Options

Even if you're satisfied with your current plan, it's still a good idea to compare options. You may find that a different plan offers better coverage at a lower cost. Medicare offers a Plan Finder tool that makes it easy to compare your options and see if there's a better fit for you.

Mistake #8: Falling for Medicare Scams

Unfortunately, the AEP is also a prime time for scammers. Be wary of unsolicited calls, emails, or mail asking for personal information. Medicare will never ask for your Social Security number, bank account information, or credit card number over the phone. If something seems suspicious, it probably is. Protect your information and report any suspicious activity.

Mistake #9: Waiting Until the Last Minute to Review Options

Rushing through your Medicare plan review at the last minute can lead to mistakes. Start early to give yourself enough time to compare plans, check coverage, and ask questions. Waiting until the final days of AEP could result in you choosing a plan that doesn't meet your needs or missing the deadline altogether.

Mistake #10: Assuming You Won't Qualify for Financial Assistance

Many people mistakenly believe they won't qualify for financial assistance programs like Medicare Savings Programs or Extra Help for prescription drug costs. However, these programs are designed to help those with limited incomes, and it's worth checking if you qualify. Even if you think you won't, it doesn't hurt to apply.

The Annual Enrollment Period is your chance to ensure you have the right Medicare coverage for your health and financial needs.

By avoiding these common mistakes, you can make the most of your options and get the coverage that best fits you.

Remember, reviewing your plan early, understanding all the costs involved, and checking whether your doctors and medications are covered will help you make an informed decision. Don’t wait until the last minute—start your review today!

Reviewed By: Keith Gilbert