What Is the Annual Enrollment Period (AEP)?
Key Takeaways
- Annual Enrollment Period (AEP) runs from October 15 to December 7 every year and is not to be confused with the General Enrollment Period from January 1 to March 31.
- Existing Medicare beneficiaries can switch, drop, or add Medicare Advantage and/or Part D.
- AEP does not apply to MedigapMedicare Supplement Insurance (Medigap) is designed to provide coverage that Original Medicare (Parts A and B) does not. Medigap policies are purchased in addition to Original Medicare and have their own monthly premiums you’ll need to pay. plans.
- AEP is not the same as the Initial Enrollment Period (IEP) for Medicare Part A and BOriginal Medicare is a fee-for-service health insurance program available to Americans aged 65 and older and some individuals with disabilities. Original Medicare is provided by the federal government and is made up of two parts: Part A (hospital insurance) and Part B (medical insurance). .
The Annual Enrollment Period, or AEP, runs from October 15 to December 7 every year. As long as you already have Medicare, you can add, drop, or switch your healthcare coverage during this window. Any changes you make take effect on January 1. Find out what you should know about AEP, how to prepare, and why you should regularly re-evaluate your healthcare plan.
Why Shop Around?
There are several reasons you might want to change your insurance. Perhaps your health situation has changed over the past year, and your current plan no longer matches your priorities. If you have Original Medicare, you may need additional benefits that a Medicare Advantage plan can offer, or you might need to shop for a Part D plan that covers new prescriptions.
Private insurance companies that sell Medicare Advantage plans can also make changes to those plans each year, such as changing details of benefits coverage or costs. If this results in higher costs or lost coverage for your preferred doctors or essential prescriptions, you have options. The average consumer has 43 Medicare Advantage plans to choose from, so you may find one that better fits your budget or healthcare needs.
However, most people don’t take advantage of the Annual Enrollment Period. Nearly 7 in 10 people with Medicare said they didn’t compare their options during an enrollment period, according to a 2021 survey. Even if you feel satisfied with your current plan and don’t intend to change, it’s a good habit to re-evaluate your options during each Annual Enrollment Period. You might discover a better or more affordable plan.
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How the Annual Enrollment Period (AEP) Works
During AEP, current Medicare consumers can explore their options and change their healthcare coverage. All parts of Medicare are open, including Original Medicare, Part C (Medicare Advantage), and Part D (prescription drug coverage).
When is the Annual Enrollment Period?
The Annual Enrollment Period begins on October 15 and ends on December 7 every year. While you may be able to change your Medicare coverage at other points during the year, such as during the Medicare Advantage Open Enrollment Period or a Special Enrollment Period, the AEP is the most accessible time for most people.
What Can You Do During the Annual Enrollment Period?
- Switch from Original Medicare to Medicare Advantage, or vice versa
- Join, drop, or switch between Medicare Advantage plans
- Add or drop prescription drug coverage
The Annual Enrollment Period allows existing Medicare beneficiaries to change their coverage. You cannot join Medicare for the first time during this period if you had delayed your enrollment.
Eligibility for the Annual Enrollment Period
- Be older than 65 or meet Medicare qualifications for people under 65
- Be currently enrolled in Medicare Part A and Part B or a Medicare Advantage plan
- Not be eligible for a separate Special Enrollment Period
See It In Action
Let’s explore a scenario to understand how AEP works. In this example, you’re a consumer with a private Medicare Advantage plan. In September, you receive your plan’s Annual Notice of Change, which explains that your prescription medication will not be covered next year.
If you cannot afford to pay out of pocket for this medication, you have a few options. You can switch to another Medicare Advantage plan, either at your current insurer or a new company, that includes your medication in its prescription drug coverage. You can also switch to Original Medicare and purchase a separate Part D plan that covers your medication.
When AEP begins on October 15, you can research your options online or over the phone with a licensed agent or broker to understand your options. Any changes you make by December 7 will go into effect on January 1.
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How to Prepare for the Annual Enrollment Period
If you’re considering changing your Medicare coverage, it’s helpful to start preparing before AEP begins. Give yourself time to learn about the different plans available in your area so you can prioritize the benefits you’d like and calculate your ideal budget. Follow these tips to get ready.
- Have documentation ready. You’ll need your Medicare number and identification to enroll in a new plan.
- Know details about your current coverage. Look over your Annual Notice of Change, Evidence of Coverage, or Medicare & You handbook to understand upcoming changes to your plan. It’s important to understand your current plan before comparing new options.
- Have a list of benefits and other factors you’d like. Write down your preferred hospital, healthcare providers, specialists, and any medications you want covered. This list can help narrow your choices, especially if you’re considering a private plan with a preferred network.
- Work with a licensed insurance agent or broker. If you feel overwhelmed by the options, a licensed insurance agent or broker can help you find a plan that fits your needs and budget.
Other Enrollment Periods to Know
If you miss the AEP, you may be able to change your coverage during another enrollment period:
- Medicare Advantage Open Enrollment Period (MAOEP): From January 1 to March 31, consumers with Medicare Advantage can switch to another Medicare Advantage plan, with or without prescription drug coverage. They can also drop Medicare Advantage to switch back to Original Medicare.
- Special Enrollment Period (SEP): If you experience a qualifying life event, like moving, losing coverage, or getting diagnosed with a chronic condition, you may be eligible for an SEP. During this time, you can join a Medicare Advantage plan, change or add a Part D plan, or switch between plans.
If you are not eligible for MAOEP or an SEP, you must wait until the next Annual Enrollment Period to make changes to your Medicare coverage.
Putting It All Together
If you already have Medicare, you can change your coverage during the Annual Enrollment Period. This may come in handy if your healthcare needs change or your insurance company changes your plan to where it no longer suits you. Even if you don’t plan to change your coverage, you might benefit from evaluating your options to see if there’s a more affordable or convenient plan that would provide adequate coverage. A licensed insurance agent or broker can help you identify your priorities and choose coverage that works for you.
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