My Medicare Advantage Costs Went Up – What Now?

Oct 17, 2023

It’s not uncommon for the costs associated with your Medicare Advantage plan to change from year to year. When your Medicare Advantage costs go up, it can be frustrating and stressful. But don’t worry; we’re here to help you navigate these changes and make informed decisions. In this article, we’ll discuss why your costs may have increased, how to review your plan, explore your options, and offer some practical tips for managing these changes.

Understanding Medicare Advantage

Before we delve into why your Medicare Advantage costs have gone up, let’s take a moment to understand what Medicare Advantage is and why it’s a popular choice for many beneficiaries.

What is Medicare Advantage?

Medicare Advantage, often called Part C, is an alternative to Original Medicare (Part A and Part B). These plans are offered by private insurance companies approved by Medicare. They provide all the same benefits as Original Medicare and sometimes prescription drug coverage.

The Benefits of Medicare Advantage

Medicare Advantage plans can be appealing because they often bundle all your healthcare needs into one plan. This simplifies the process and may have lower out-of-pocket costs. Many beneficiaries appreciate the convenience and cost-efficient potential of Medicare Advantage.

Why Your Costs Increased

Now that we’ve covered the basics, let’s address the big question: Why did your Medicare Advantage costs go up?

There are several reasons for these cost increases, and it’s essential to understand them to make informed decisions.

Plan Changes

Every year, Medicare Advantage plans make changes. These changes can affect your costs and plans. To stay informed about these changes, you should receive an Annual Notice of Change (ANOC) from your plan. This document outlines any alterations to your plan, including cost adjustments, deductible changes, co-pay increases, or revisions to the services covered.

Network Changes

Your plan’s network might change. Networks are the hospitals, doctors, and other healthcare providers that have contracts with your plan. If your preferred healthcare providers are no longer in-network, you might face higher out-of-pocket costs, making it important to assess these changes in your plan’s network.

Reviewing Your Plan

Now, let’s talk about how to review your Medicare Advantage plan to understand these changes better.

Annual Notice of Change (ANOC)

When you receive your ANOC, don’t toss it aside. It’s essential to carefully review this document. Pay special attention to changes in costs,  deductibles, co-pays, and out-of-pocket maximums. Understanding these cost changes is the first step in making informed decisions about your healthcare.

Changes in Covered Services and Networks

In addition to costs, check if there are changes in the services covered by your plan. Some services that were previously covered might no longer be included, or there could be new plan offerings.  Also, confirm that your preferred healthcare providers are still in-network. If they’re not, you might want to reconsider your plan.

Exploring Your Options

Review Medicare Plans

Now that you’ve reviewed your plan, you have some options to consider if your costs have gone up.

Medicare Annual Enrollment Period (AEP)

The Medicare Annual Enrollment Period, which typically runs from October 15 to December 7 each year, allows you to make changes to your Medicare Advantage plan. During this period, you can switch to a different Medicare Advantage plan, return to Original Medicare, or make changes to your Medicare Part D prescription drug plan.

Make your AEP decisions a breeze this year with our FREE checklist guide.

Switching to a Different Medicare Advantage Plan

If you’re dissatisfied with the changes in your current plan, AEP is your opportunity to shop for a different Medicare Advantage plan. Review plans in your area to find one that better suits your healthcare needs and budget.

Returning to Original Medicare

If you’re not satisfied with your Medicare Advantage plan’s changes and would prefer the flexibility of Original Medicare, you can use AEP to switch back. Consider adding a Medicare Supplement plan and a Part D prescription drug plan to complete your coverage.

Tips for Managing Costs

In addition to exploring your options and seeking assistance, here are some practical tips to help manage your Medicare Advantage costs:

  • Use in-network providers and pharmacies to lower your out-of-pocket expenses.
  • Take advantage of preventive care services, which can save you money in the long run by avoiding costly medical issues.
  • Review your medications and consider generic alternatives to reduce prescription drug costs.
  • Monitor your plan’s formulary (list of covered drugs) to ensure your medications are still covered.

Final Takeaway

Facing an increase in your Medicare Advantage costs can be daunting, but it’s essential to understand your options and make informed decisions. Review your plan and explore your choices during the Medicare Annual Enrollment Period. Remember, your health and financial well-being are paramount, and you have the tools to make the best decisions for your unique situation. Don’t hesitate to act when needed to secure the right healthcare for your needs for your future.

If all of this feels overwhelming, don't worry, you're not alone.

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