How Many Americans Really Switch During AEP?
With all the celebrity ads around Medicare promising lower costs, more benefits, and extra benefits, one may think that everyone is switching plans and getting a better deal. Turns out, the truth is just the opposite.
According to the Kaiser Foundation, Less than 10% of individuals actually switch plans throughout the Annual Enrollment Period. The good news is that this typically means folks are reasonably satisfied with their plans.
Although the referenced article is 2 years old, the data still remains consistent with what we’re seeing in our many AEP seasons. Amongst our clients, here are the top 3 reasons why folks have decided to switch plans.
Top reasons to switch:
1. Change in medications - with over 20 prescription plans in each state, it’s wise to shop around when it comes to prescriptions. Prescription plans are where we see the biggest changes from year to year. Companies can change which drugs are covered and at what price. Just because your current plan worked well this year doesn’t mean that next year’s version will be just as good. If you have a long list of medications (or expensive ones), it’s worth it to review your coverage. As an existing client, our team is more than happy to assist.
2. Change in health - as time goes by, it’s not uncommon to expect a change in health or the need for additional procedures. Some needs are predictable and can be scheduled, while unfortunately others cannot. A big reason that individuals will choose to review their options, is often due to a change in health. Whether it’s a new diagnosis, a new team of providers, or a change in preference on where/how to receive care, any major change in health ought to warrant a plan review.
3. Moving - even though it is not limited to the Annual Enrollment Period, in the past year we’ve seen many folks move across the country. Whether it’s to be closer to grandkids, lower taxes, or better weather, many individuals are looking to make a switch to a new state. Although Medigap (Supplemental) plans are portable, Part D and Medicare Advantage plans are not. A change in the state of residency means a change in plans - even if it’s a similar plan.
In conclusion, if none of the above have changed for you and you have not had any significant changes in location, health, or medications, you can stay on your current plan as it will automatically enroll you for the following year. If you’re not satisfied with your plan or would like to explore other options, please schedule a consultation with us and one of our agents will assist you with finding the right fit.