The Importance of an Annual Review

Randal C. Hill

50plus Magazine

REMEMBER WHEN TEACHERS ENCOURAGED YOU TO REVIEW FOR AN UPCOMING TEST? Some of us heeded that advice, some didn’t. Those who did probably earned a higher grade than those of us who chose to listen to records or chat on the phone.

That long-ago advice can serve us well today when it comes to Medicare. When established in 1965 as a social insurance plan, eligible workers who paid into the system all received the same coverage. In 2006, Medicare became privatized, and prescription drug coverage (Part D) entered the marketplace. Then, several years later came the meteoric growth of Medicare Advantage plans.

Oct 15 through Dec 7 each year, Medicare enrollees can shop the program’s vast offerings for a plan that best meets their unique needs. The challenge, many say, is that the options are overwhelming.

It’s easy to understand this sentiment. Every autumn brings an onslaught of ads on TV, the Internet and by mail. Medicare sends out an Annual Notice of Change, as well as a hefty handbook called Medicare and You. More than half of enrollees are dismayed by the information overload and, as a result, don’t look closely at their existing coverage or new options.

There is no “one size fits all” Medicare plan, and costs and benefits can change from year to year. Taking the time to compare options could result in better-fitting coverage and/or money savings.

Here’s one recommendation. With pen and paper, your current policy and a hot beverage at hand, take a deep breath and plunge ahead with these questions:

•  Have your healthcare or financial needs changed in the past year?

•  Are your doctors still in network?

•  Will your prescriptions be covered under your current drug plan?

•  Do you need to add benefits?

•  Will your Medicare plan follow you if you travel?

Your review may not bring a better grade like in school, but it could mean more cash in your pocket, and the assurance that you’ve got the best possible coverage for your needs.