The Medicare annual election period (AEP) starts on October 15, but agents can start helping clients prepare well before then. Reach out to remind clients to watch for and review their Annual Notice of Change (ANOC), share tips on what to look for, and schedule AEP appointments.
Give Your Clients a Heads Up
Every year, Medicare Advantage and Medicare Part D plans must send ANOC letters to all enrollees.
The Medicare ANOC is an important document that outlines how the plan will change in the coming plan year and gives enrollees the information they need to make informed enrollment decisions during the annual election period. However, Medicare enrollees who aren’t looking for the letter may miss it or dismiss it as junk mail. Proactive outreach can help clients feel prepared while reinforcing your role as a trusted resource before AEP begins.
Give your clients a heads-up so they can watch out for this important notice.
ANOC letters must be mailed by September 30. If your clients haven’t received theirs by early October, they should contact their plan.
Help Your Clients Understand the Medicare ANOC
The Medicare ANOC summarizes how the plan is changing in the new year. There are many possible changes:
- The plan’s monthly premiums may increase or decrease.
- Out-of-pocket costs. The plan’s annual deductible, copays or out-of-pocket maximum may change.
- The plan may add new benefits or discontinue benefits that it currently provides.
- The plan’s network of hospitals and providers may change. Some providers may leave the network, and others may join.
- The plan’s prescription drug formulary may change. Some medications may no longer be covered or may have different coverage rules or costs, while previously excluded medications may become covered.
- Service area. The plan may exit certain areas, meaning enrollees in those areas will need to find new coverage.
Let your clients know these changes will take effect on January 1.
Show Your Clients How Changes May Affect Them
The changes in the ANOC may seem abstract, but they can significantly affect an enrollee’s care and costs. Help your clients think about how the changes will affect them by giving them specific questions to ponder.
- How will your monthly costs change, and are the new costs manageable? Consider your premiums, copays, deductibles and expected prescription costs.
- Will your doctors still be covered, and if you have to switch doctors, are you OK with this? Consider primary care doctors as well as specialists.
- Will your prescriptions still be covered, and will costs change? Consider any prescriptions you currently take, as well as any you plan to start taking.
- Are you losing any benefits, and if so, are these benefits that you currently use or think you might want to use in the coming year? Consider how losing these benefits will affect your health and costs.
- Are you gaining any benefits, and if so, do you think you might use them? Consider how these benefits might help you.
Start Planning Meetings and Events
Some clients may be upset about plan changes and want to explore other plan options. You may also have clients who must change plans because their current plan is terminating coverage or exiting their service area.
You cannot market next year’s plans until October 1. This means you cannot discuss alternative plans or hold Medicare marketing or sales meetings related to next year’s plans. However, you can reach out to clients, listen to their concerns, and start scheduling meetings for October. You can also plan Medicare educational events. It can help to group clients with the same carrier so you can cover all the changes specific to that carrier.
Prepare for a Busy AEP
Every year brings plan changes, new options and a lot to think about during AEP. However, right now rising health care costs and changing regulations are putting additional pressure on the insurance industry. Some carriers are responding by exiting certain markets or adjusting supplemental benefits, which could leave some clients with important coverage decisions to make. At the same time, many Medicare beneficiaries are managing rising costs and tight budgets, so they may be very concerned about even modest price increases.
Agents can help by reaching out to clients, offering guidance and setting up appointments to explore options. Western Asset Protect is here to support you. Contact us with any questions.