Do Medicare Plans Automatically Renew?
August 12, 2024 | John Demko
If you have a Medicare plan, you may wonder if it automatically renews each year or if you need to take action to keep or change your plan. It’s important to be aware of how your Medicare plan renews, the information to watch out for, and the steps you need to take to ensure you have the coverage that is ideal for your needs. In this article, we will cover just that so you can be well-informed and prepared to take action where needed.
Understanding Medicare Plan Renewal
It’s important to understand that different Medicare plans have different renewal processes. Some Medicare plans will automatically renew, while others may require you to take specific actions to ensure continuation of coverage. The renewal process depends on the type of Medicare coverage you have as well as changes occurring to that plan for the future calendar year.
It’s a good idea to review any documents and notices you receive from your insurance carrier to know what to expect and what actions, if any, you need to take to ensure uninterrupted coverage. If you have questions about the paperwork you receive, our Medicare insurance brokers can assist you in understanding what the notice means.
Original Medicare
If you have original Medicare, this coverage will continue each year as long as premiums are paid. There may be changes in what Medicare covers as well as the monthly premium you pay, and Medicare will notify you.
Medicare Supplements
If you have a Medicare Supplement or Medigap policy, these plans are considered guaranteed renewable. Guaranteed renewable means your plan benefits remain the same year after year. Similar to Original Medicare, these policies auto renew as long as you pay your monthly premium.
Medicare Advantage and Part D Plans
If you have a stand-alone Part D drug plan or a Medicare Advantage plan (MA/MAPD), then your plan is on an annual contract. Each year, there may be changes to your plan premiums, benefits, and coverage.
Additionally, the plan may or may not be available in the following year; if the insurance company discontinues the plan, you will be notified in advance. If this occurs, you may either be automatically enrolled in another plan offered by that insurance company, or you may need to elect and enroll in a new plan before you lose coverage. This is all explained in the document
In summary: if your Medicare plan is not being discontinued and you continue to pay your premiums and do not manually disenroll yourself from your plan, you will automatically be enrolled in that same plan for next year.
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When Action is Required
As described above, there are some situations that require you to take action to renew, maintain or elect new coverage.
This can include:
- The plan is no longer being offered
- Moving out of the service area
- Significant plan changes that impact the plan’s suitability for your needs
- Substantial increases in plan premium
- Plan changes that drastically impact your out-of-pocket expenses
These are just some of many scenarios that justify taking action to review your medicare coverage, regardless of whether your plan is set to be automatically renewed.
Review and Change Your Medicare Plan
Although many Medicare plans renew automatically each year, it’s necessary to review the plan details and any changes that may occur. This includes checking for updates to coverage, premiums, and copayments. One of the best times to do this is during the Medicare Annual Enrollment Period (AEP) each fall, which takes place from October 15th – December 7th. During this time, you will be notified of changes to your existing plan, making it the ideal opportunity to assess if it is still suitable for your needs.
During the Medicare AEP, you can compare other Medicare plan options, and if you decide there is a better option, you can enroll in a new plan for the following year. You don’t have to navigate this process alone. Our experienced insurance brokers at Twin City Underwriters can assist you by offering guidance on understanding important documentation, explaining your plan’s benefits and any changes, and helping you compare and enroll in Medicare plans. We are here to help you make the best choices for your Medicare healthcare coverage.
Choosing a Medicare plan can be difficult. Twin City Underwriters helps Medicare recipients in Minnesota, Wisconsin, North Dakota, South Dakota, Iowa and Florida find the Medicare plan that meets their unique needs. Attend an online Medicare webinar, in-person Medicare workshop, or schedule a one-on-one meeting with one of our Medicare insurance brokers to get your questions answered!
Do you need help with Medicare, insurance and health plans? Explore your options with Allina Health Aetna, BlueCross BlueShield of Minnesota, Medica, UCare, United HealthCare and more. We work with you to find the best plan for your needs and budget. Contact us today to get started.
