Medicare AEP Is Almost Here: What You Need to Know about the Medicare Annual Enrollment Period

The 2020 Medicare Annual Enrollment Period (Medicare AEP) is fast approaching. For friends and clients of Medigap Advisors, this is the time of year to call and make an appointment. Your Personal Benefits Manager can help you sign up for a Medicare Advantage Plan, switch to a new plan, or sign up for Part D prescription coverage.

Medicare AEP is the only time of year that you can make these changes to your coverage. It’s also a good time to sign up for an all-new MSA Plan … a little something we’re excited to tell you about. Read on to find out more about how AEP can bring about big savings in 2021.

What is Medicare AEP?

The Medicare Annual Enrollment Period (also called Annual Election Period) is a big deal. Maybe it doesn’t feel like it for you, but it sure is here around the office. This once-per-year signup period is the only time that you can sign up for Medicare Advantage. In addition, it’s the only time you can switch from one MA plan to another.

Medicare AEP begins on October 15th and extends through December 7th. The only other time to enroll is during a Special Enrollment Period (SEP), which most people don’t qualify for.

In summary, the Annual Enrollment is key for anyone who wants to:

•  Sign up for a new Medicare Advantage plan (guaranteed issue)
•  Switch from one MA plan to another MA plan
•  Sign up for Medicare Part D coverage or switch Part D plans

Your Medicare Supplement Rates Might Be Going Up

If you have had the same Medicare Supplement plan for 6+ years, your rates have probably gone up. Because MA plans have very low premiums ($0 on some plans!), it may make financial sense to switch if you have experienced larger rate increases, or simply need to tighten the budget.

We can help you anticipate potential rate changes with your supplement plan, or get you into a more affordable MA option if that’s the way you want to go.

NEW This Year: MSA Plans

Here’s how it works: You sign up for an MSA Plan during Medicare AEP. At that point, a Medical Savings Account is opened in your name. Every year, Medicare makes a $2000 – $3000 contribution to your account. These funds roll over from year to year, earning interest.

That money is yours to invest or to spend as you wish.

But here’s the kicker: If you spend these funds on qualified medical expenses, it’s all entirely tax-free­. For Medicare enrollees who don’t use their plan that much, it’s like trading “excessive coverage” for “flexible spending cash.”

Furthermore, if you invest the money, all investment growth is tax-deferred. 

Over the course of retirement, these tax-free healthcare dollars can really add up. In the end, they can save you from having to drain your retirement savings to pay for unexpected treatment.

If MSA plans sound familiar, it’s because they’re a lot like HSAs. The biggest difference is that with MSAs, Medicare is doing the contributing, not the enrollee.

Call Your Benefits Manager for an Appointment

As you can imagine, the weeks leading up to the Medicare AEP can be a busy time for our advisors. Your Personal Benefits Manager can help you find a better plan now, so you’re ready for AEP. I recommend making an appointment earlier rather than later. Our calendars are likely to fill up fast.

If you are interested in looking at other options for yourself, get an appointment scheduled on your Personal Benefits Manager’s calendar now. There are always other ways to cut your monthly costs on health care. A new MSA Plan might be the perfect way to do it, and 2021 is looking like a good place to start. 

To your health and wealth,

Wiley P. Long, III
President – MediGap Advisors