The annual Open Enrollment annual period when eligible Americans 65 and older can choose their Medicare policy for 2024 is quickly drawing to a close. The television and radio advertisements and postcards touting Medicare plans begin arriving around the same time that pumpkin latte coffee drinks and bags of fun sized candy bars show up.
Open Enrollment traditionally kicks off on October 15 and ends on December 7. In this period, older Americans can sign up for traditional Medicare coverage or Medicare Advantage, the option offered by health insurance companies. They can continue with the plan they’re on or choose a different one.
Whether a senior is celebrating their 65th birthday and becoming eligible for Medicare or has been Medicare-eligible for a while, all are encouraged to carefully review their coverage.
“Whether you’re shopping for yourself or helping a loved one. it’s important to assess the coverage options,” advised Craig Stillman, CEO of UnitedHealthcare/Medicare for the Upper Midwest. “Choosing a Medicare plan is one of the most important decisions a person can make, not only for their health but also for their wallet.”
Stillman advises people to take the time to look over their options and to make sure they understand what he calls ‘the ABC’s of Medicare.”
Original Medicare includes Parts A and B. Part A covers in-patient care, hospitalization, some home health care, care in skilled nursing facilities and hospice. Part B covers doctor’s visits, some outpatient hospital services and some durable medical equipment. This part of Medicare covers about 80% of health care costs, with the remaining 20% paid out-of-pocket.
Part C, known as Medicare Advantage, combines Parts A and B and often includes prescription coverage and other benefits not included in original Medicare. These plans are offered by private health insurance companies. Part D helps with costs on prescription medications. Most Medicare Advantage plans include prescription drug coverage.
With some 10,000 Americans turning 65 every day, Medicare Advantage plans are seeing rapid growth in popularity.
“Medicare Advantage enrollment has more than doubled over the past decade and now includes nearly half of all Medicare beneficiaries,” Stillman said. “It’s appealing because the plan offers value, simplicity and predictability. It combines your coverage in one plan so you carry one card in your wallet and have one company to work with.”
Some Medicare Advantage programs also offer additional benefits and services that original Medicare doesn’t cover, like vision, hearing aids, dental, disease management and fitness club memberships.
But they can vary in the price of premiums and the amount of co-pays and other out-of-pocket costs, so it’s worth investing some research time to make sure an existing plan is still the right option.
“If anything has changed this year with your current plan, your health status or your budget, a decision to do nothing could lead to unpleasant surprises or missed cost savings in 2024,” Stillman warned.