Have You Read Your Medicare Plan's Notice of Change? Here's Why You Should

Key Points

• Medicare's open enrollment period kicks off later this month.

• During that time, you can switch to a new Medicare plan that better serves your needs.

• To make a smart decision, you first need to see how your current Medicare plan is changing.

• The $23,760 Social Security bonus most retirees completely overlook ›

Many people think of October as the month when the leaves start to change colors, the weather starts to cool, and year-end preparations need to begin. But it's actually a very important month for older Americans.

For one thing, October is when the Social Security Administration is expected to unveil 2026's cost-of-living adjustment, or COLA. Social Security benefits are eligible for a COLA every year. And those raises are instrumental in helping retirees keep up with inflation.

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October is also when Medicare's open enrollment period begins. Each year, between Oct. 15 and Dec. 7, Medicare participants can make changes to their coverage.

Healthcare can be a huge expense for retirees -- one that eats up a lot of your Social Security income. For this reason, it's important to set yourself up with the right Medicare plan.

But you can't make an informed decision about a new Medicare plan during open enrollment until you see how your old plan is changing. That's why it's so important to read your Medicare plan's annual notice of change carefully.

What is a notice of change?

If you're fairly new to Medicare, you may not be familiar with your plan's annual notice of change. But in a nutshell, it's a summary of all the ways your Medicare Advantage or Part D drug plan is changing from one year to the next year.

Some of the changes your plan may be undergoing for the new year could include:

• Cost changes, such as an increase or decrease in your premiums, deductibles, and copays
• Coverage changes, such as benefits being added to or removed from your plan
• Drug formulary changes, such as certain medications getting categorized into higher or lower tiers
• Provider changes, such as certain doctors moving in or out of your plan's network

Why your plan's notice of change is so important

It's important to choose a Medicare plan that best serves your specific needs. But certain changes could make it so that your current Medicare plan is no longer right for you.

Let's say you chose your Part D drug plan because it grouped your medications into a tier that came with relatively low copays. If that tier is changing in the new year, it could leave you with much higher out-of-pocket costs. That could easily make the case for you to find a new plan.

Similarly, let's say you've been seeing the same doctors for years, and they're providers you've come to trust. If those providers will no longer be in your Medicare Advantage plan's network next year, you may want to switch to a plan where you'll continue having access to your doctors of choice.

Get all of the right information

It may be that your current Medicare plan isn't changing so drastically. Or it could be that even with big changes, it's still the best plan out there for you. But either way, before you start reviewing your plan choices during open enrollment, it's important to get a handle on the various ways your coverage is changing for 2026.

At this point, most Medicare enrollees should have receive their annual notice of change. If you haven't, contact your plan administrator immediately. It's crucial that you have that information so you're able to get a jump start on open enrollment once it officially kicks off.

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