IT’S NOT TOO LATE TO SWITCH

Follow steps carefully when making switch

The 22 million people enrolled in a Medicare Advantage plan have until March 31 to change plans.

It's not too late to switch.

In a recent article in Investment News, Mary Beth Franklin pointed out that although the annual enrollment season for Medicare enrollment ran from Oct. 15 to Dec. 7, the 22 million people enrolled in a Medicare Advantage plan have until March 31 to change plans.

Many people select a Medicare Advantage plan because of lower cost and because many of these plans offer benefits not offered by traditional Medicare, such as vision and dental care and prescription drug coverage. Those who selected a Medicare Advantage plan during open enrollment may switch to another or return to original Medicare. However, those wishing to do so must carefully follow, in order, the required steps.

One of the disadvantages of enrolling in a Medicare Advantage plan is that if you change your mind, there is no guarantee that you will be able to obtain a Medigap policy at a later date. And even if you can, the cost of a Medigap policy may be higher than it would be for individuals who enroll in traditional Medicare when they first reach age 65.

When you apply for Medigap coverage, you are subject to medical underwriting. Traditional Part B medical coverage covers only about 85% of associated costs. Accordingly, many, if not most, traditional Medicare enrollees elect a Medigap policy that covers the 15% of medical costs not covered by traditional Medicare.

Accordingly, if you decide that you no longer want to continue your enrollment with your existing Medicare Advantage plan, and prefer to use traditional Medicare instead, then you should apply for Medigap coverage before you disenroll in your plan. Only after you are approved should you apply for Medicare Part D (drug coverage) if you choose.

The problem in applying for Part D coverage first is that you will automatically be disenrolled from your Medicare Advantage plan. If you apply for Part D before you are approved for Medigap, then you could be facing a lack of supplemental coverage for a year of insurance with traditional Medicare. In other words, you would incur the 15% medical costs not covered by traditional Medicare.

If you want to consider another Medicare Advantage Plan, you can consult the Medicare Plan Finder (www.medicare.gov/find-a-plan/questions/ home.asp) or contact your state's Senior Health Insurance Program (SHIP). I volunteered for SHIP for many years. It is a reputable organization, and there is no cost for its services. Franklin also recommends consulting a Medicare insurance broker, such as Boomer Benefits. These brokers are paid by the insurance companies, not you.

If you have already enrolled in traditional Medicare, you would not be able to consider a Medicare Advantage plan until 2021. Although there are some advantages associated with Medicare Advantage plans, there are disadvantages as well.

A significant disadvantage is that the doctors you prefer may not be available to you without additional costs, and specialists your doctors recommend may not be available also without additional cost. In addition, there would be regular co-pays to doctors for services and specific procedures that would not be incurred if you selected traditional Medicare and an associated Medigap plan.

An excellent source for all aspects of Medicare is a book I have recommended in the past, “Get What's Yours for Medicare: Maximize Your Coverage, Minimize Your Costs,” by Philip Moeller (Simon and Schuster). Another important source is “Medicare and You,” available from the federal Centers for Medicare & Medicaid Services, available at no cost. It is updated each year.

DREAMSTIME