3 Reasons You Should Reevaluate Your Medicare Advantage Plan Every Year in Retirement

Once you turn 65, you’re eligible for health coverage under Medicare. But that doesn’t mean you should stick with original Medicare, which is Parts A and B plus a Part D drug plan.

Some seniors like the idea of all-in-one coverage. And so to that end, they opt to enroll in a Medicare Advantage plan.

Medicare Advantage plans are offered by private insurers as an alternative to original Medicare. The nice thing about these plans is that they’re required to offer at least the same benefits as original Medicare.

But many Medicare Advantage plans offer supplemental benefits beyond what original Medicare covers. Those benefits can run the gamut from dental care to eye exams to hearing aids to fitness options.

And those extra benefits won’t necessarily cost more. Though the cost of Medicare Advantage depends on the specific plan at hand, there are many $0 premium Advantage plans out there.

It’s important to take the time to choose the right Medicare Advantage plan when you’re newly eligible. But it’s equally important to reevaluate your coverage year after year. Here’s why.

1. Your plan’s costs might change

When you sign up for auto insurance, the premium you pay for your first year of coverage isn’t necessarily the same premium you end up paying your second or third year or beyond.

Similarly, Medicare Advantage plan rates aren’t set in stone. And it’s more than possible for your costs to increase from one year to the next. That could mean higher premiums and deductibles.

Similarly, you might start off with a certain copay for medications under your Medicare Advantage plan. But if your plan’s formulary changes from one year to the next, the cost of your prescriptions could rise.

That’s why it’s a good idea to see what your plan’s costs look like every year. Your plan administrator is required to send you a notice of change to that affect. Read it carefully so you understand what’s going on with your coverage.

2. Your plan’s network might change

One drawback of Medicare Advantage plans is that they commonly limit you to a specific provider network. By contrast, when you stick to original Medicare, you can typically see any doctor in the country who accepts Medicare.

It’s possible for your list of in-network doctors to change from year to year with Medicare Advantage. So that’s something worth paying attention to.

It may be that the providers you see today are doctors you’ve used for much of your adult life. And having to make a change may not be optimal. So this is an important aspect of your Medicare Advantage coverage to review each year.

3. Your healthcare needs might change

As you age, different health issues might arise. Your medication list might grow, and you could start needing different diagnostic tests at different frequencies.

Of course, it’s also possible for your health to change for the better in retirement. You may find that once you’ve shed the stress of a job, you’re able to exercise and eat well, thereby addressing some of the health concerns you once had.

But that’s another reason why it’s so crucial to reassess your Medicare Advantage coverage each year. It may be that based on personal changes, there’s a plan out there that’s a better fit.

For example, if you’re given a new diagnosis, you may want to find a Medicare Advantage plan that offers benefits that can specifically address it. It’s not a given that your current plan will.

Remember, as a Medicare Advantage enrollee, you have plenty of opportunity to make changes to your coverage should you decide that that makes sense. First, you can choose a new plan during Medicare’s fall open enrollment, which runs from Oct. 15 through Dec. 7 each year.

You can also make changes to your coverage during the Medicare Advantage open enrollment period, which runs from Jan. 1 through Mar. 31 each year.

During these periods, you can use Medicare’s online plan finder to compare your choices. You’ll be given a list of options depending on your zip code. And, you’ll see plan ratings so you’re able to get a sense of how happy enrollees are with their coverage.