Medicare Open Enrollment Questions

In 2010, more than 47 million Americans were enrolled in Medicare. Medicare is a national health-care program used primarily by senior citizens over the age of 64, although individuals with disabilities or certain health conditions may be able to sign up for it before they turn 65 as well. Beneficiaries can first join Medicare during their initial enrollment period, which occurs around their 65th birthday. Medicare holds an annual open enrollment period as well, which allows users to change their prescription drug coverage and/or health-care plans annually.

Why Does Medicare Hold Open Enrollment?

• Medicare comes in four parts, named A through D. Parts A and B are called Original Medicare and are sold by the government. They mainly cover hospitalizations, home health, hospice and preventive care. Part C is usually referred to as Medicare Advantage. Medicare Advantage lets users buy their Part A and B benefits from private insurance companies. Part D is insurance for prescription drug coverage and is also sold by private companies. Medicare plans, especially Parts C and D, can change every year. Premiums, deductibles and copays can go up, and benefits can be added or dropped. The open enrollment period gives consumers a chance to assess their plans, review any changes and see if these policies are still meeting their necessary health-care needs.

When is the Open Enrollment Period?

• Open enrollment occurs every fall. It usually lasts from the middle of October or November until December 31. It does not always start on the same day, but it does always end on December 31. In 2010, open enrollment began on November 15 . In 2011, open enrollment began on October 15.

What Can I Do During Open Enrollment?

• During the annual open enrollment period for Medicare, beneficiaries can do several things. If they have Part D, they can switch from one plan to another, or drop Part D completely. They can also decide to join Part D. If they have Medicare Advantage, they can switch from one MA to a different MA. Users can also change from an MA plan that does not have drug coverage to one that does, or vice versa.

Will I Be Penalized For Changing?

• You will not be penalized for changing prescription drug plans or Medicare Advantage plans during open enrollment. You will also not be penalized for deciding to switch from Medicare Advantage back to Original Medicare. However, if you did not enroll in Part D at all when you were initially eligible and want to sign up for the first time during open enrollment, you will be subject to a late penalty. This will be added to your monthly premium, and you will have to pay it for the entire time you have Part D coverage.