Understanding Medicare’s Annual Notice of Change:

What to Look For

Every September, millions of Medicare beneficiaries receive a document that many people unfortunately toss aside as junk mail.

While it’s important to review this document, the reality is that most people find their plans remain a good fit from year to year.

What Is the Annual Notice of Change?

The ANOC is your Medicare plan’s way of telling you about any changes coming in 2026.

If you’re in a Medicare Advantage or Part D prescription drug plan, your plan will send you a “Plan Annual Notice of Change” (ANOC) each fall. The ANOC includes any changes in coverage, costs, and benefits that will be effective in January. Medicare supplement (Medigap) plans don’t send ANOCs since those benefits are standardized and remain consistent.

Most people receive their ANOC by Sept. 30, giving you time to review any changes before Medicare’s Open Enrollment Period begins October 15. The good news? Many changes are routine, but review your ANOC for drug formulary, tier, and utilization-management updates.

Understanding 2026’s Medicare Changes

This year’s ANOC reflects a major Medicare improvement that will benefit many beneficiaries.

In 2026, Medicare beneficiaries will pay no more than $2,100 out of pocket for prescription drugs covered under Part D (it’s $2,000 in 2025). This cap will provide significant savings for those taking expensive medications—a welcome change for many seniors.

However, since MAPD and Part D prescription insurers will absorb more prescription costs due to this cap, some plans may adjust premiums or benefits to maintain their financial stability. While these adjustments are happening across the industry, they’re typically modest for most beneficiaries.

Key Areas to Review in Your ANOC

Your ANOC will show changes in several areas, though most adjustments are routine year-to-year modifications.

Premium Changes: Premiums can rise or fall year-to-year. The law caps growth in the base beneficiary premium, but individual plan premiums vary.

Prescription Drug Coverage: For those with Part D or MAPD plans, look for:

• Any medications removed from your plan’s formulary
• Drugs moved to different cost tiers
• Changes in copayments
• New prior authorization requirements

Remember, if you’re happy with your current Part D plan and it covers your medications well, small formulary adjustments usually don’t warrant a plan change.

Provider Networks: For Medicare Advantage clients, the ANOC will note if any providers are leaving the network. Networks can change—confirm your doctors and pharmacies remain in-network for 2026.

Benefit Changes Medicare Advantage plans may make minor adjustments to supplemental benefits. However, if you’ve been satisfied with your plan’s core medical coverage, these changes rarely impact your overall experience significantly.

What This Means for Our Clients

The impact of these changes varies depending on your current coverage, but stability is the common theme for most of our clients.

Whether you have a Medicare supplement plan, Medicare Advantage coverage, or a standalone Part D plan, the reality is that if you’ve been satisfied with your current coverage, you’ll likely want to stay put. We originally helped you select coverage designed for long-term satisfaction and stability, which means most of our clients experience smooth year-to-year transitions.

For those with Medicare supplement plans, your standardized benefits remain unchanged, and any premium adjustments are typically modest. Medicare Advantage clients who have been happy with their plan’s doctors and overall experience will find that minor benefit adjustments don’t significantly change their satisfaction.

The new $2,100 prescription drug cap benefits everyone with Part D coverage, whether standalone or through Medicare Advantage.

When to Consider Making Changes

Most of our clients find their current coverage continues to meet their needs well, but there are specific situations worth reviewing.

You might want to explore alternatives if your ANOC shows that several of your current medications are no longer covered, your primary doctor is leaving the network, or your plan’s premium is increasing substantially more than typical market rates.

However, these significant changes affect only a small percentage of beneficiaries. The vast majority of our clients review their ANOC, confirm their satisfaction with their current coverage, and continue with their existing plans.

The Advantage of Working with MediGap Advisors

One of the benefits of being our client is that we originally helped you select coverage designed for long-term satisfaction and stability.

We helped you choosechose your current plan based on factors like consistent coverage, reliable networks, and sustainable pricing. This careful initial selection means most of our clients experience smooth year-to-year transitions without needing plan changes.

If you do notice significant changes in your ANOC that concern you—such as major medication coverage issues or substantial cost increases—your Personal Benefits Manager iswe’re here to help evaluate whether a change makes sense for your specific situation.

Remember, staying with a plan you know and trust often provides more value than switching to an unknown plan for small potential savings. Stability and familiarity with your coverage have real benefits.

Here’s to your health and wealth,

Wiley P. Long, III
President – MediGap Advisors

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