Avoid These 3 Misunderstandings About Medicare’s Annual Enrollment

Medicare is confusing, so it’s no wonder that several misconceptions have arisen about the Annual Enrollment Period.

The Annual Enrollment Period (AEP) is the time of year when you’re allowed to change your health and drug plans. This time lasts from October 15 to December 7.

Over the years, we’ve consistently seen 3 common myths and misconceptions about the Annual Enrollment Period, and we’re here to clear up the misunderstandings.

Disclaimer: We do not offer every plan available in your area. Currently we represent 4 organizations which offer 41 products in your area. Please contact Medicare.gov, 1‑800‑MEDICARE, or your local State Health Insurance Program to get information on all of your options. Not connected with or endorsed by the United States government or the federal Medicare program.

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‍Misconception #1: There’s no reason to change plans during the Annual Enrollment Period.

The Annual Enrollment Period is actually an opportunity – not a burden. This is the only time of year, outside of special exceptions, when you can switch your Medicare Advantage and/or Part D drug plan.

While switching might seem like a hassle, you could end up saving yourself hundreds of dollars per year.

This is especially true for 2025 as the cost of many plans are expected to increase. Drug formularies are also continuing to change as the market does, so ensure your prescriptions are covered by your plan!

Pay attention to your Annual Notice of Change (ANOC) so you see how your plan will change come January 1.

Plus, when you shop the market, it encourages insurance companies to improve their coverage, because you’re increasing the competition.

You can do some price shopping yourself by using Medicare’s Plan Finder tool. However, if you prefer us to do it, we offer this service at no cost.

Get a health plan review by a licensed agent

Seeing what’s out there is as easy as contacting our office. You have nothing to lose, and lots of savings to potentially gain!

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Misconception #2: I can only change my Medigap policy during the Annual Enrollment Period.

The Annual Enrollment Period is the time when you’re allowed to switch or make changes to your Medicare Advantage plan and/or your Medicare Part D plan.

Your Medigap policy (also called a Medicare Supplement) is not affected by the Annual Enrollment Period at all.

You are allowed to switch Medigap carriers at any time during the year. However, you will most likely have to pass medical underwriting to do this unless you qualify for a special exception.

Most individuals find it convenient to change plans (if necessary) at their policy anniversary date. Changing plans could potentially save you money since different carriers offer different rates.

Medigap benefits are standardized by law, which means every company must provide the same benefits. That means you can switch companies, keep the same benefits, but ultimately save money.

Misconception #3: I don't need a drug plan if I don’t take any prescriptions.

Last but not least is the misconception that you should only pay for a Part D drug plan if you’re taking prescriptions.

If you choose not to carry a Part D drug plan when you become eligible, you will start incurring penalties. This happens if you go without Part D or creditable prescription drug coverage for any continuous period of 63 days or more after the end of your Initial Enrollment Period (IEP).

The penalties aren’t that bad, but they do add up over time.

That penalty also doesn't go away – you pay that extra premium for the rest of your life.

The second reason to sign up for a drug plan even if you don’t take prescriptions is this: there’s only one time a year when you’re allowed to sign up for a Part D drug plan. That’s during the Annual Enrollment Period from October 15-December 7.

If you miss that window, you’re out of luck until the following year.

Prescription drugs can be VERY expensive if you don’t have any insurance, and if you are prescribed an expensive medication in the middle of the year, you will have no choice but to pay for it out of pocket.

We find that most seniors – about 78% to be exact – opt to carry a Part D drug plan because of these reasons.

There are inexpensive options – just reach out to us for a no obligation quote.

Conclusion

Navigating Medicare’s Annual Enrollment Period might seem overwhelming, but it’s an opportunity to make sure you have the best possible coverage.

Whether it’s updating your Medicare Advantage or Part D drug plan, or even considering changes to your Medigap policy, taking the time to review your options can lead to significant savings and better coverage.

Remember: even if you’re not currently taking prescriptions, enrolling in a Part D plan now can save you from lifelong penalties and unexpected costs. Shopping the market not only benefits you but also encourages insurers to improve their offerings.

Don’t miss out on the opportunities to save money during the Annual Enrollment Period. It only comes once per year!