Every September, Medicare enrollees receive their Annual Notice of Change (ANOC), which informs them of any changes to their coverage and costs. However, some Medicare enrollees view these notices with confusion and concern. This Annual Enrollment Period (AEP) may bring even more Medicare market disruption than usual, as well as increased interest in plan switching. Agents can prepare now to ensure that they’re ready to answer client questions, ease fears, and find practical solutions.
Why This AEP May Be Particularly Busy
AEP is always a busy time for agents. As the number of Medicare enrollees grows each year, it becomes increasingly busy. However, this year’s AEP may be busy for a different reason.
George Dippel, President at Deft Research, explains that two issues are on track to cause high switching levels this AEP. First, Medicare Advantage carriers have seen high utilization and subpar rates over the last two years. In 2025, they responded with Service Area Reductions (SARs), market exits and plan changes, and plan year 2026 could see more of the same. Second, Medicare beneficiaries have had time to see what all those 2025 changes really meant for them. They’ve felt the impact of recent changes, and they may be worried about more changes ahead.
According to Deft Research, Medicare Advantage switching rates reached a record of 23% during last year’s AEP. If this year’s AEP matches or exceeds this switching rate, agents will have their hands full.
For agents who can effectively manage client concerns and provide solid solutions, this presents an opportunity to retain existing clients while attracting new ones. However, high switching rates also increase the threat of client churn. The agents who are prepared for a challenging AEP stand to come out ahead.
Are You Ready To Address Common Concerns?
As your clients review their ANOC letters, certain changes are likely to raise concerns. As an agent, you can anticipate these concerns, so you’ll be ready for them.
- Benefit Reductions. Some plans may reduce their supplemental benefits. For example, a Medicare plan that offers an over-the-counter (OTC) card may reduce or eliminate this benefit. This could be alarming to clients who rely on and use this benefit. Be ready to explain exactly what the changes mean and how they will impact the client.
- Service Area Reductions. If your clients are impacted by a Service Area Reduction, they may have no choice but to select a different plan. This may be stressful for them, especially if they like their plan or they’ve been in it for a long time. Be ready to explain what’s happening and what their options are.
- Market Exits. Medicare enrollees may also lose coverage due to carrier exits from the Medicare market. Once again, this may be stressful for enrollees, but you can reassure your clients that there are other options.
- Increased Costs. Medicare enrollees may see higher premiums, deductibles and copays. For clients living on a fixed budget, cost increases can be worrisome. Be ready to explain what’s changing and how it could impact your client’s monthly budget.
Preparing for a Disruptive AEP
All Medicare agents should be ready for a disruptive AEP with lots of shopping and switching. Here are two things you can do to help the AEP season go smoothly:
- Send out your retention letters. ANOC letters arrive in September, so your retention letters should arrive around the same time. That way, you’ll reach your clients before they’re inundated with marketing from other sources. You can’t market next year’s plans yet, but you can give them a heads-up regarding the ANOC letters and upcoming AEP. See more retention letter tips here.
- Schedule ANOC meetings. You can invite clients with the same carrier to ANOC meetings dedicated to going over the upcoming changes. You can schedule these meetings between October 1 and 15, and then follow up with one-on-one meetings. See more ANOC meeting tips and compliance reminders here.
Do you have questions or concerns about the upcoming AEP? Western Asset Protection is here to help you have a successful AEP. Contact us today.