What Does the Medicare Open Enrollment Period Mean for Federal Retirees?

This article talks about the Medicare Open Enrollment Period (OEP), which runs from October 15, 2022, through December 7, 2022. It will pay particular attention to the OEP and the opportunities available to select federal retirees.

First, it is crucial to define Medicare Part C (Medicare Advantage) and its benefits to those who qualify for enrollment. Private insurance companies that manage Medicare Advantage can provide a broader range of healthcare coverage. Prescription drug coverage is a common feature of most plans, and many programs also offer benefits like vision, hearing, and dental insurance.

Enrollees must use healthcare providers, such as doctors, dentists, pharmacists, and optometrists, in their Medicare Advantage plan’s network to reduce out-of-pocket expenses because Medicare Advantage plans are offered in an HMO or PPO environment.

An individual must be enrolled in both Medicare Part A and Medicare Part B to join a Medicare Advantage plan. In particular, those with medical, dental, and vision needs who prefer the convenience of receiving their treatment “under one roof” rather than purchasing separate health, dental, and vision insurance plans can benefit from Medicare Advantage programs. The limitation is that Medicare Advantage subscribers frequently can’t use their preferred medical professionals, such as dentists, pharmacists, and physicians. They have to make use of the doctors and hospitals in the network of the Medicare Advantage plan. However, if a Medicare Advantage plan enrollee made the appropriate choice, it might save them a lot of money on their overall healthcare expenses.

What is OEP, and Why Does It Happen Each Year?

The OEP, also known as the Annual Election Period or AEP, occurs every year between October 15 and December 7. Any changes made during the OEP take effect on January 1 of the following year. Medicare beneficiaries can change or disenroll from their Medicare Advantage plans, enroll in a Medicare Advantage plan, and change or disenroll from a different Medicare Part D prescription drug plan they are already enrolled in during the OEP.

The OEP occurs each year due to the opportunity to re-file with Medicare given to Medicare Advantage and Part D prescription drug plans, both managed by commercial insurance firms. This means that an enrollee’s plan (a Medicare Advantage plan, a Medicare Part D prescription drug plan, or both) can and will typically change its benefits and premiums.

Because of this, the Center for Medicare Services (CMS) gives Medicare-eligible individuals an election period each year to change their plan if they are dissatisfied with their current coverage or if changes to the plan are made that the individual currently enrolled in the plan finds unsatisfactory.

It is significant to note that beneficiaries of Medicare Advantage plans or Medicare Part D prescription medication plans do not have to switch plans if they are satisfied with their current year’s coverage.

Plans must have sent letters to participants in September 2022 for those who signed up for Medicare Advantage or a Medicare Part D prescription drug insurance plan during the year 2022. This is known as the “Annual Notice of Change.”

If the plan premium and benefits change, it will be one of the details included in the annual notice of the change. The benefit adjustments to the plan from 2022 to 2023 are listed side by side in the Annual Notice of Change. This will make it easier to compare updates to coverage.

An individual enrolled in Original Medicare (Medicare Parts A and B) during the 2022 OEP has the following options for altering their health insurance:

• Sign up for a fresh Medicare Advantage or Part D prescription drug coverage.
• Change to a Medicare Advantage plan from Original Medicare (Medicare Parts A and B). They need to continue to be covered by Medicare Parts A and B.
• Remaining in Original Medicare, with or without a Medicare Part D pharmaceutical plan, after dropping a Medicare Advantage Plan.
• Switch to another Medicare Advantage Plan; and
• If nothing is done, present Medicare coverage will continue until 2023.

Medicare Advantage and Medicare Part D prescription medication programs will be subject to modifications beginning January 1, 2023.

A federal retiree with Original Medicare who is thinking about switching to a Medicare Advantage program for 2023 could sign up for a Medicare Advantage plan administered by the FEHB program during the 2023 “open season” (November 14 through December 12, 2022). The coverage starts on January 1, 2023.

Federal retirees currently enrolled in Original Medicare and an FEHB health plan and are interested in switching to a private Medicare Advantage Plan during the OEP may do so.

Contact Information:
Email: [email protected]
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Bio:
Rick Viader is a Federal Retirement Consultant that uses proven strategies to help federal employees achieve their financial goals and make sure they receive all the benefits they worked so hard to achieve.

In helping federal employees, Rick has seen the need to offer retirement plan coaching where Human Resources departments either could not or were not able to assist. For almost 14 years, Rick has specialized in using federal government benefits and retirement systems to maximize retirement incomes.

His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.