If you are already enrolled in Medicare, during the open enrollment period each year you have an opportunity to change the type of health care coverage and plan that you are on. Before the open enrollment period starts, there are a few things you need to do so you know what coverage you have right now and what changes you may like to make.
#1 Look Over Your Annual Notice of Change
Before the open enrollment period, your Medicare health care insurance provider is going to send you an annual notice of change. The annual notice of change is basically an overview of how your insurance will work in the upcoming year.
The annual notice of change will let you know if there are any changes in your coverage or costs for the new year. This notice allows you to see if any of the changes to your insurance will impact your coverage in the new year. Review this document carefully; if there are major changes to your insurance coverage, you may want to switch health care providers during the open enrollment period.
#2 Check Your Prescription Drug Coverage
As one ages, it is common to take prescription drugs to manage a variety of conditions. Go into your current Medicare insurance plan formulary and look up the medications that you currently take. The plan's formulary will let you know if the coverage for any of your medications will change in the new year and if the copay for the prescriptions will change at all.
If the prescription coverage will not change, you are good. If the prescription coverage will change, you may want to look for prescription drug coverage that will keep your specific medical costs down.
#3 Look at the Total Cost
Next, look at the total cost for your plan. Keep in mind that your premium is just what you pay each month to maintain your coverage; your premium is not your total healthcare costs. Your total healthcare costs include the deductible you have to pay before your coverage kicks in, the co-payments you have to pay for treatment and medication, and the out-of-pocket limit you have to pay before your insurance coverage takes over 100 percent of the payments for your care.
Figure out what your total costs are right now, and use this information when comparing plans. This will allow you to look past the premium and look at the big picture of what your health insurance will cost you.
Navigating the Medicare open enrollment period can be a complicated process, which is why you should not hesitate to reach out and get assistance with this process. An independent wealth management firm can help you navigate the Medicare process in a way that is beneficial to your pocketbook and your health.
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