Updated: Oct 6, 2022
If you’re enrolled in a Medicare Advantage plan or Medicare Part D prescription drug plan, you should be receiving your Annual Notice of Change (ANOC) letter soon (kupuna with Medigap plans do not receive this notice). If you have not received an ANOC by the end of September, you should contact your Medicare Advantage Plan or Part D plan to request it.
The ANOC is usually mailed at the same time as the plan’s “evidence of coverage,” which lays out a more comprehensive list of the plan’s costs and benefits for the upcoming year. The reason that the ANOC letter is so important is that it provides a summary of any changes that will happen to your plan’s costs and coverage, effective January 1 of the next year. It is helpful for deciding if you should make any changes to your coverage during the fall Annual Enrollment Period between October 15 and December 7.
Once you have had a chance to review your letter, it’s a good idea to schedule an appointment with a Medicare insurance agent who can answer any questions you have and discuss other plan options in Hawaii that may be a better fit for you. Because plans may change from year to year and different options become available each year, it is fairly common to discover a different plan that better fits your needs.
Contact Premier Benefit Consultants for free advice from a local professional. We are now contracted with EVERY Medicare Advantage plan in Hawaii, which allows us to provide unbiased and certified advice. Think of us as your one stop shop for Medicare insurance.
It's time to Review Your Annual Notice of Change Letter
There are several potential changes to look out for in your ANOC, that fall into three categories:
1. Changes to costs:
Increase or decrease in monthly premiums
Increase or decrease in deductibles
Increase or decrease in copays
Increase or decrease in maximum out-of-pocket limit
Increase or decrease in coinsurance
2. Changes to drug formulary
New drugs included
Some drugs now excluded
3. Changes to coverage
Changes to coverage for dental, hearing, vision, or other additional benefits provided in your Medicare Advantage plan.
Monthly premium changes for 2023
The average monthly premium for Medicare Advantage Plans dropped in 2022 to $19.00, down from $21.22 in 2021. The average price of MA premiums for 2023 is not yet available.
The average premiums for Medicare prescription drug coverage will decrease to about $31.50 per month in 2023 from an average of $32.08 in 2022. On the other hand, the maximum deductible for Part D coverage is expected to increase from $480 this year to $505 in 2023, according to information released in April by Medicare officials. If your Part D plan will no longer be offered in plan year 2023, speak to a local Medicare agent to discuss your current Part D options. Otherwise, your insurer may automatically move you to a different Part D plan that could have a much higher premium or that may not include the particular prescription drugs you need.
Other changes to be aware of that will not be addressed on the ANOC:
Most seniors do not pay a monthly premium for Medicare Part A (hospital insurance) and coverage does not change from year to year.
Part B does come with a monthly premium. The standard 2022 premium is $170.10, which was an increase of $21.60 from $148.50 in 2021. The 2023 premium rate has not yet been released but it has been reported that CMS may use 2022 savings to lower 2023 Medicare Part B premiums.
Whether you are on Original Medicare with a separate Part D drug plan or you’re on a Medicare Advantage Plan, this is the time to review any changes that will affect your benefits and premiums for 2023 and decide whether a different plan would be a better fit.
Our independent insurance agents are dedicated to assisting people on Medicare and those who are ready to transition from employer coverage to personal retirement coverage. We help kupuna understand their benefits options and apply for additional coverage, as needed. As the only Medicare agency who represents every Medicare Advantage plan in Hawaii, we are able to offer unbiased advice; all at no cost to our clients.
At PBC, our clients are our number one priority and we look forward to getting to know you and your needs. Call us today at (808) 738-4500 to see how we may be of assistance.