Financial Planning

Medicare recipients who have enrolled in a Medicare Advantage Plan have the opportunity to make a change to their Advantage Plan if they are not happy with it. The window to modify Medicare coverage opened on January 1, 2021 and closes on March 31, 2021. This window also provides an opportunity to enroll in Medicare for those who missed their initial enrollment period and do not qualify for a special enrollment period. Note: coverage for late enrollees will not begin until July 1, 2021.

There are a few common reasons to change or drop an Advantage Plan – your doctor may no longer be in the Plan’s network, or a necessary medication may not be covered by the Plan. If these reasons or others prompt a change to the Plan you’re enrolled in, there are some things you should be aware of.

Advantage Plans can be switched one time during this modification period and once the change is made it is set for 2021, unless the recipient qualifies for a special enrollment period.

An Advantage Plan can be dropped in exchange for basic Medicare coverage, but this will result in a loss of prescription drug coverage. Shopping for and enrolling in a stand-alone Medicare drug plan will address that issue. Further, if you switched to basic Medicare and want to get a supplemental MediGap policy to cover costs for hospital stays and outpatient care, you should apply for MediGap first and get approval before dropping your Advantage Plan or buying a stand-alone drug plan. This should eliminate having to answer health questions and go through underwriting to be approved for a supplemental policy.

Navigating Medicare and making modifications can be a challenge, so we recommend talking with a Medicare expert before making a change.

Please consult with an attorney or a tax or financial advisor regarding your specific legal, tax, estate planning, or financial situation. The information in this article is not intended as legal or tax advice.