Medicare Advantage Open Enrollment: What to Know About Switching Plans

A lot of people are familiar with Medicare's annual fall open enrollment period, which starts in mid-October and runs until early December each year. But if you're on a Medicare Advantage plan, there's another open enrollment period you should know about.

Medicare Advantage has its own open enrollment period, and it's currently underway. Between now and March 31, Medicare Advantage enrollees can make a single change to their coverage.

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That change could entail dumping your current Medicare Advantage plan and finding a new one. Or, you could move onto original Medicare instead. If either is something you're considering doing, here's what you need to know.

It's important to look at the big picture

If you feel that you're paying a lot for your current Medicare Advantage plan, you may be inclined to choose a different one -- especially if your current plan charges a premium and you're able to switch to a $0 premium plan instead.

But you should know that there are costs associated with Medicare Advantage outside of just premiums. Not only might a new plan come with a deductible, but your copays and coinsurance costs may be higher than what you're paying now.

If you're thinking of switching Medicare Advantage plans, look at all of the numbers. And also, look at the coverage you'll be getting.

It may be that a less expensive Medicare Advantage plan doesn't offer the same supplemental benefits as your current plan. Or, it may be that a new plan won't have your preferred providers in network.

Switching to original Medicare may not save you money

Medicare Advantage can, for some people, be a more affordable way to get coverage. But if you have a lot of health issues, you could end up facing large bills as a Medicare Advantage enrollee.

Plus, Medicare Advantage plans are notorious for requiring prior authorization for many services and diagnostic tests. If you feel like your care keeps getting delayed, you may be inclined to move over to original Medicare between now and the end of March.

But if you switch to original Medicare, you could face even higher costs. That's because original Medicare has no annual out-of-pocket maximum.

Now a good way to cover yourself in light of that is to buy a Medigap plan for supplemental insurance. But if you've been on Medicare Advantage for a while, you may need to go through medical underwriting to get Medigap coverage. And that could mean facing costly premiums -- or not qualifying for Medigap at all.

On the other hand, moving over to original Medicare could mean getting access to more doctors. And it could be a smart move if you're planning to start spending more time outside of your home state. Sticking with Medicare Advantage could, in that case, mean going out of network more often, leading to higher costs.

It pays to see what options you have during Medicare Advantage's open enrollment. But make your choice carefully so you don't end up regretting it.

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