Medicare Open Enrollment is an annual event that runs from Sunday, October 15, 2020 through Thursday, December 7, 2020, where anyone can add a Medicare health insurance plan in their life.

However, not everyone can qualify for this enrollment. Anyone looking to apply for Medicare must be turning 65 years in the next three months, or they’re 65, or they just turned 65 years in the last three months.

This open enrollment aims to help the existing users re-evaluate and compare their Medicare coverage plan against others in the market.

Equip yourself with all the knowledge about Medicare, and by doing so, you’ll finally get the Medicare benefits you deserve. So, here is all you need to know about the upcoming Medicare Open Enrollment.

What Comprises Medicare?

Medicare Part A: Here, you’re required to acquire hospital insurance covering all your inpatient matters. This includes a short period of hospital stay and can pay for some of your healthcare bills.

Medicare Part B: In this case, you should obtain medical insurance responsible for any services you receive from doctors or any other medical practitioners.

This plan covers some services that include preventative services, durable medical equipment, home health care, and outpatient services.

Medigap: This category acts as a supplemental policy that covers your medical bill to a certain amount, then you top up the rest.

Medicare Advantage Plan: This plan brings together all the benefits enjoyed in Part A and Part B. Before, this plan was called Part C. Services received in this category include paying for prescription drugs and other extra services like hearing, dental, and vision.

Medicare Part D: This plan is purely for covering your prescription drugs’ amount.

Note that anyone 65 years old or above can qualify for Part A of the Medicare plan. Plus, they must have been paying for medical insurance for quite some time.

Additionally, if you want to be eligible for Medicare Part B, you should enroll for insurance coverage, whereby you’ll be required to pay a monthly premium.

Who Needs Medicare

Apart from individuals aged 65 and above, other groups of people can benefit from this Medicare Open Enrollment.

For instance, anyone with disabilities and those experiencing renal diseases have been diagnosed with permanent kidney failure and require a transplant.

Besides, disabled groups are entitled to secure Social Security or Railroad Retirement Board disability benefits for no less than 24 months.

Key Factors to Note

Having health insurance doesn’t limit you from enrolling for Medicare coverage. Also, you don’t have to wait until you’re 65 years of age to apply for Medicare.

You can sign up for Medicare Part A, which doesn’t require you to pay for its premium, plus enrolling into the system now gives you a better chance when you’re ready to sign up for Part B.

You need to also keep in mind that if you’re eligible to apply for Medicare, you should do so during the set time; otherwise, you risk having to pay a fine. However, if it’s not possible for you to apply during that period, here is what will happen:

Late enrollment penalty: If you’re always late to enroll for Part B, you’ll be incurring a 10 percent increment in your Part B premium amount.

But if you have health insurance that can allow you to delay enrolling in Part B, then you’re sorted. The longer you take to pay Part B premium, the higher the penalty you’re expected to incur.

Special enrollment period: In case you’re over 65 years, and you have been using health insurance, but suddenly you retire or get laid, and you can’t pay for it anymore, you can apply for Medicare.

Such a scenario triggers a special enrollment period (SEP) where it’s allowed for you to sign up for Medicare without incurring a penalty.

In addition to that, if you’re moving to a different region, you automatically qualify for SEP, and you should make the changes as soon as they open for enrollment.

Common Mistakes That Will Cost You More

Not going through numerous Part D plan options: If you have been using the same Part D drug plan, it’s understandable if you choose to stick to it for years.

However, chances are you’re missing out on other better options from other insurance companies.

Review several plans, and you might land one that is cost-effective and worth your time. Plus, medical needs change with time, and it’s only fair if you change your plan with them.

Not checking if the terms of your plan changed: By September, you should have received the annual notice for any changes in your Part D plan.

The notice should clearly state the changes that will be implemented in the following year. Ensure you’ve checked the details of the notice to see if you’ll be affected in any way.

Almost every year, the drug plan formularies change, and depending on the group you’re placed in, it will determine the amount you will pay. Basically, the higher the group tier you’re in, the higher the amount of money you’re expected to pay.

Forgetting to separate your Part D plan from that of your spouse: Obviously, it sounds perfect for acquiring the same Part D plan as your spouse since you’re considering things like copays and similar rules.

But, you might not have the same health issues as your spouse, and splitting the coverage can end up being less expensive.

Final Thoughts

The Medicare Open Enrollment provides an opportunity to have a healthcare plan at a cost-effective rate. You can plan to switch from one plan to another during that time and still receive its full benefits.

Generally, you should thoroughly review your existing Medicare plan, and in case you’re dissatisfied, it’s time you make the changes during the open enrollment period. Otherwise, go for a plan that suits all of your medical needs.