Many people are first introduced to Medicare by helping with their parent’s coverage. Medicare is complex but being in the know about the program can help someone protect their aging parent’s health and finances.
With the Medicare Annual Enrollment Period (AEP) coming up from October 15 through December 7, here are seven ways to help an aging parent navigate Medicare enrollment.
1. Understand the Basics
There’s a lot to know about Medicare but understanding the parts of Medicare is a great place to start.
- Medicare Part A is known as hospital insurance, and it covers inpatient care. Medicare Part B is known as medical insurance, and it covers outpatient care. Together, these two parts make up Original Medicare. Original Medicare can be used at any doctor’s office, hospital or specialist that accepts Medicare, with no provider networks or referrals needed.
- Medicare Part C, commonly known as Medicare Advantage, is an alternative to Original Medicare. These plans are offered by private insurance companies, and they provide many of the same benefits as traditional Medicare, plus possibly additional benefits (like dental and vision, for example). One drawback of Medicare Part C is that most of these plans have provider networks.
- Medicare Part D is a prescription drug plan.
- Medicare Supplement insurance—also known as Medigap—helps people with Original Medicare control their out-of-pocket costs.
2. Know What Can Be Done During AEP
Medicare AEP happens each fall and is a chance for people with Medicare to make changes to their coverage. During AEP, people can:
- Switch from Medicare Advantage to Original Medicare.
- Switch from Original Medicare to Medicare Advantage.
- Switch to a different Medicare Advantage plan.
- Join, switch or cancel a Medicare Part D prescription drug plan.
Any changes made during AEP go into effect on January 1 of the following year.
Plans automatically renew if no changes are made. However, it’s important to review coverage every year.
3. Review Their Annual Notice of Change Letter
People with Medicare should receive an Annual Notice of Change (ANOC) letter in the mail in September. The ANOC details changes happening to a person’s Medicare plan that will go into effect in January, including changes in coverage, costs and more.
Going over an aging parent’s ANOC can help them decide if they’re still happy with their coverage, or if it’s time to make a change.
Related: What is an Annual Notice of Change (ANOC) Letter and What Should You Do if You Get One?
4. Understand Their Health Needs and Preferences
If a parent has certain doctors that they need or want to use, or they frequently need to see specialists, an Advantage plan may not be their best option. That’s because these plans usually have provider networks and require referrals to see specialists, whereas Original Medicare does not.
Original Medicare paired with Medicare Supplement insurance could also be a better option for parents who travel frequently because these plans can be used at any doctor’s office or hospital that accepts Medicare.
5. Understand Their Budget
Many people believe that Medicare pays for everything, but that isn’t true. Understanding the premiums, deductibles, copayments and coinsurance associated with plans can help Medicare enrollees manage their retirement budget today and in the future. Remember that sometimes paying higher premiums today may help keep overall costs lower tomorrow.
Related: Budgeting for Medicare Costs: 6 Tips to Help
6. Fill Out the Medicare Authorization Form if Needed
If someone will be heavily involved in their parents’ Medicare coverage and speaking with a carrier on their behalf, they may need to fill out and submit the Authorization to Disclose Personal Health Information Release Form.
7. Talk to a Licensed Agent
Helping an aging parent navigate Medicare can be challenging, but they don’t have to figure it out alone. Whether they’re helping their aging parent find the right Medicare Supplement insurance plan, a Part D plan, or a Medicare Advantage plan, a licensed insurance agent can help them find plans that fit their needs and budget.
Want more? Check out our blogs, Take Advantage of These 8 Free Things Under Medicare and Should Couples Choose the Same Medicare Plan?
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Bankers Life and Casualty Company and its licensed agents are not affiliated with the U.S. government or the federal Medicare program.
