Don’t Auto-Renew Your Medicare Plan Without Looking at These 5 Things

Medicare Open Enrollment runs from October 15 through December 7, giving Medicare beneficiaries an opportunity to review their current health and prescription drug coverage and make changes for the year ahead. Any changes generally take effect January 1.

If you’re happy with your current coverage, it can be tempting to simply let it renew.

But before you do, it’s worth taking a closer look.

Medicare plans can change from year to year. Your prescriptions can change. Your doctors can change. And your own health needs may look different than they did when you chose your current coverage.

That doesn’t mean you need to switch plans every year. It simply means your decision to stay should be an informed one.

Here are five things I would review before allowing your current Medicare coverage to roll into another year.

1. What is changing with your current plan?

If you’re enrolled in a Medicare plan, you should receive an Annual Notice of Change each fall outlining changes that will take effect in January. This can include changes to coverage, costs and other plan details.

It’s not exactly exciting reading, but don’t automatically toss it aside.

Look for changes to premiums, deductibles, copays, prescription drug coverage and other benefits you regularly use.

The goal isn’t necessarily to find a cheaper plan. It’s to understand whether the plan that worked well for you this year still works well for you next year.

2. Are your prescriptions still covered the way you expect?

Prescription coverage deserves its own review.

If you’ve added a medication, changed dosages or begun taking a higher-cost prescription during the year, make sure your coverage still makes sense for what you actually take today.

Even if your medication list hasn’t changed, the way a plan covers those medications can.

Rather than looking only at the monthly premium, consider the potential total cost of your prescriptions throughout the year.

A plan that appears inexpensive at first glance may not necessarily be the least expensive option once your specific medications are factored in.

3. Are your doctors and preferred hospitals still a good fit with your coverage?

For many people, keeping access to trusted physicians matters just as much as cost.

If you have a Medicare Advantage plan, confirm that the doctors, specialists, hospitals and other providers you prefer remain accessible under the plan for the coming year.

This becomes particularly important if you’ve started seeing a new specialist, received a new diagnosis or anticipate a procedure in the year ahead.

Insurance coverage shouldn't be reviewed in a vacuum. It needs to work with the healthcare relationships you actually rely on.

4. Has anything changed in your life?

Sometimes the biggest change isn't the Medicare plan. It’s you.

Think about what has happened over the past year and what you expect over the next one.

Maybe you are traveling more frequently. Maybe you spend part of the year in another state. Maybe you have a new health concern, new prescriptions or more frequent specialist appointments.

Or perhaps your spouse's coverage or employment situation has changed.

Medicare decisions are personal because healthcare needs are personal. The plan you selected several years ago may still be appropriate—but it shouldn't remain your plan simply because it always has been.

5. How does this fit into your larger financial plan?

Healthcare is one piece of your retirement plan, not a completely separate decision.

Premiums, out-of-pocket costs, prescription expenses and potential healthcare needs all affect retirement cash flow.

For higher-income retirees, Medicare planning can also intersect with tax planning because income can affect Medicare premiums.

That’s why this is a good time of year to look at healthcare decisions alongside the rest of your financial picture rather than handling them completely independently.

Staying Put Can Be the Right Decision

Reviewing your Medicare coverage does not mean you need to change it.

You may go through this entire exercise and determine that your current coverage still makes perfect sense.

That is a perfectly good outcome.

The important part is knowing why you’re staying.

Medicare’s annual Open Enrollment period runs from October 15 through December 7. Medicare recommends reviewing your current health and drug coverage against available options for the following year, particularly because plan costs and benefits—as well as your own healthcare needs—can change.

A little time spent reviewing those details now can help you head into the new year knowing that your healthcare coverage still fits the life you’re actually living.