Medicare renewal is usually automatic. All you have to do is keep up with your monthly premium payments, and your coverage will stay active. This is what makes Medicare so appealing – your coverage does not go out from under you.
However, there are some things to keep in mind.
What are some exceptions?
The exceptions are Medicare Advantage and Part D. These work differently from traditional Medicare because they’re solely offered through private insurance companies.
This leads to Medicare and its contracts with insurance companies. Medicare can cancel its contract with your plan. This could be because the insurance company lost money from selling it, or your insurer no longer sells your particular plan.
How will I know if my policy won’t automatically renew?
If your insurance provider no longer has a contract with Medicare or stops selling the specific plan you were enrolled in, you will get a Non-Renewal Notice. This will come in the mail by October.
What happens next?
Your plan may do what’s known as mapping, where your plan enrolls you in a plan similar to the one it no longer issues. If you would rather look into more Medicare Advantage or Part D plans, you can also take advantage of the Annual Enrollment Period, which spans from October 15 to December 7. You can assess available options and enroll in the one that works best for you.
If you do nothing, you may be taken out of your Medicare Advantage plan and be switched to an Original Medicare policy. You will need to enroll in Part D separately if you want prescription drug coverage.
What if I don’t want my policy to automatically renew?
Even if Medicare doesn’t cancel its contract with your insurer, you can still opt for a new policy instead of letting your current plan renew during these times:
- Annual Enrollment (October 15 – December 7) – Join, switch, or drop plans
- Medicare Advantage Open Enrollment (January 1 – March 31) – Switch from Medicare Advantage to another Medicare Advantage plan, drop Medicare Advantage to sign up for Original Medicare (however, you can’t switch from Original Medicare to a Medicare Advantage plan), or join a Medicare Prescription Drug plan
Give us a call today!
At Turning 65 Solutions, we understand how important it is that you are aware of how your Medicare plan works. Call us today at 830-217-6711 to learn more about how Medicare can benefit you and what you can do if you’re ready to switch plans.