5 Mistakes to Avoid During the Medicare Annual Election Period

The Medicare Annual Election Period (AEP) is one of the most important times of the year for beneficiaries. Each fall, from October 15 to December 7, those enrolled in Medicare have the opportunity to review their coverage and make changes for the upcoming year. While AEP can be a chance to optimize benefits, it’s also a time when mistakes are easily made. Understanding common pitfalls can help you avoid costly errors and ensure your Medicare coverage meets your needs. Let’s review the top five mistakes you’ll want to avoid this season.

1. Waiting Too Long to Review Your Options

One of the most common mistakes beneficiaries make is delaying their AEP review until the last minute. It’s easy to assume that your current plan will continue to work well for you, but Medicare plans often change year to year. Premiums, deductibles, copays, and covered medications may shift, sometimes significantly.

By waiting until late November or early December, you risk missing deadlines or feeling rushed into decisions without fully understanding your options. It’s best to start reviewing your plan choices as soon as the AEP begins in mid-October. This allows time to compare plans thoroughly, evaluate changes in coverage, and ask questions before making a final decision.

2. Overlooking the Annual Notice of Change (ANOC)

Every year, Medicare Advantage and Medicare Part D plans send an Annual Notice of Change (ANOC) to their members. This document details changes in the upcoming year’s coverage, including costs, formularies, and provider networks. Failing to read the ANOC can result in unexpected expenses or disruptions in care.

For example, a medication you rely on may no longer be covered, or your preferred pharmacy could be out of network. By carefully reviewing your ANOC, you can identify these changes early and take steps to choose a plan that continues to meet your needs. Paying attention to the details in your ANOC is a simple way to avoid surprises and maintain the care you rely on.

3. Ignoring Changes in Your Health Needs

Another mistake many people make is assuming that their current coverage will continue to be suitable without considering changes in their health. Your health status, medications, and anticipated medical needs can evolve from year to year.

For instance, if you’ve recently been prescribed a new medication or plan to have a procedure next year, it’s important to ensure your plan covers it at a reasonable cost. Additionally, changes in your preferred doctors or hospitals may affect whether your plan’s network is still convenient. Failing to account for these changes can result in higher out-of-pocket costs and limited access to care when you need it most.

4. Choosing a Plan Based Solely on Premiums

While a low monthly premium is attractive, it’s not the only factor to consider when selecting a Medicare plan. Some people make the mistake of choosing a plan with a cheaper premium, only to discover later that out-of-pocket costs, copays, deductibles, and coverage limitations make the plan more expensive overall.

It’s important to take a comprehensive look at the total costs and benefits. For example, a plan with a slightly higher premium may offer lower prescription costs, fewer restrictions on specialists, or more extensive preventive care coverage. Balancing monthly premiums with anticipated medical expenses and your own health needs is key to choosing the plan that provides the best overall value.

5. Neglecting to Seek Guidance

Medicare can be complicated, and many beneficiaries make the mistake of trying to navigate AEP on their own. Misunderstanding plan details, coverage rules, or enrollment deadlines can lead to errors that are difficult to fix.

Working with a licensed Medicare broker or counselor can help ensure that you make informed decisions. A professional can review your current coverage, explain changes for the upcoming year, compare available options, and help you select a plan that meets your health and financial needs. Guidance from an expert is especially valuable if you have multiple health conditions, take several prescriptions, or are considering a significant change like switching from Original Medicare to a Medicare Advantage plan.

Make the Most of AEP

The Annual Election Period is your opportunity to review, compare, and optimize your Medicare coverage for the year ahead. If you’re unsure where to start or need help navigating the options, a licensed Medicare broker at Local Medicare Specialists can provide expert advice and help you find the plan that’s right for you. Don’t wait until the last minute. Start reviewing your options today to make the most of AEP.