Planning to Sit Out Medicare Open Enrollment? Here’s Why You Shouldn’t

Source Motley_fool

Key Points

  • Medicare's open enrollment period runs from Oct. 15 through Dec. 7 each year.

  • During this time, you can make important changes to your coverage.

  • If you don't participate, you could face higher costs in 2027 and lose access to your preferred providers.

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

Fall is a great time to explore local parks and hiking trails, catch some football, and visit farmers' markets every weekend. But it's also a good time to review your Medicare coverage.

Each year between Oct. 15 and Dec. 7, Medicare runs an open enrollment period. During this time, current enrollees can make important changes such as switching from one Part D drug plan to another, moving to a different Medicare Advantage plan, or ditching Medicare Advantage in favor of original Medicare.

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You may not want to bother participating in open enrollment if you're reasonably content with your current Medicare plan. But you should know that sitting out open enrollment could be a big mistake.

Doing nothing could cost you

If you're on Medicare, there's no obligation to participate in open enrollment. As long as your plan is available in 2027, you can stick with it if it suits your needs. But if you don't review your plan choices for the new year, you could end up paying more for healthcare.

There may be a Part D plan with lower premiums and a more favorable tier structure, resulting in less expensive copays. If you don't research your options, your drug coverage could end up costing more.

There may also be a Medicare Advantage plan with lower out-of-pocket costs than your current plan. Or, there may be a plan with comparable costs that offers added benefits. If you don't dig around, you won't know what you're missing.

You could lose access to your preferred providers

If you're on Medicare Advantage, you may be used to sticking to a specific provider network. Going outside your plan's network could get expensive.

But if may be that some of your favorite doctors are leaving your current plan's network in 2027. If that's the case and you want to keep seeing them, it could pay to switch to a different Medicare Advantage plan where they're in-network.

And remember, sticking with the doctors you know isn't just a matter of convenience. If they know your health history inside and out, they may be in a position to offer superior care.

Don't overlook a big opportunity

You might think it's not a big deal to pass on open enrollment this year if there's nothing wrong with your Medicare coverage and your plan doesn't seem to be changing for the worse in 2027. But you should know that sitting out open enrollment could mean paying more for healthcare in 2027, forgoing better benefits, and losing access to the providers you want to see.

Rather than do that, carve out some time in the coming weeks to review your plan options for 2027. After doing some research, you may decide to stick with your current plan. But at least you'll be making that decision from an informed place, rather than just hoping your current plan is the best one for you.

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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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