Medicare AEP and OEP 2020: Are You Ready?

Mediacre AEP and OEP 2020 are fast approaching.

Maximizing Medicare Benefits: Understanding AEP and OEP for 2020

The Medicare AEP and OEP 2020 seasons are just around the corner. The (almost) back-to-back enrollment periods fall at some of the busier times of the year. Annual Enrollment Period (AEP) straddles Thanksgiving and Open Enrollment Period (OEP) starts New Year’s Day.

Before the holiday season whisks you away, here are some tips and reminders to ensure you get the Medicare coverage you need for the upcoming year.

Medicare AEP and OEP 2020: What’s the difference?

AEP happens once a year in the fall. It begins on October 15th and ends December 7th. During that time, Medicare beneficiaries can make changes to their Medicare coverage.

During AEP you can:

Change from Original Medicare to a Medicare Advantage Plan
Return to Original Medicare from a Medicare Advantage Plan
Switch from one Medicare Advantage Plan to another
Add a Part D plan
Cancel a Part D plan
Switch from one Part D plan to another

Any changes you make during AEP will go into effect on January 1st.

OEP is the enrollment period after AEP. It’s when Medicare beneficiaries enrolled in Medicare Advantage Plans can make changes to their coverage. OEP begins January 1st and ends March 31st.

During OEP you can:

Add a stand-alone Part D plan
Cancel a stand-alone PART D plan
Return to Original Medicare from a Medicare Advantage Plan
Switch from one Medicare Advantage Plan to a different one.

Medicare changes for 2020

As AEP rolls around, you’ll hear about changes Congress may have made to Medicare. This year, you’ll see a difference in drug costs in the coverage gap.

For brand-name drugs, the percentage you pay will stay the same.
For generic drugs, the percentage you pay will drop from 37% to 25%.

	You’ll pay this percentage for brand-name drugs in the coverage gap	You’ll pay this percentage for generic drugs in the coverage gap
2019	25%	37%
2020	25%	25%

Source: Medicare.gov

Start planning for AEP 2020 now

Whether you’re switching from Original Medicare or adjusting your prescription coverage, it’s a good idea to know the steps for completing the process. Here are a few tips to make the process simple:

Be on the alert for your Annual Notice of Change letter

As a Medicare beneficiary, your provider will send you an Annual Notice of Change letter. Generally, the letters go out in September as a reminder that AEP is coming up. In the letter, your plan provider will let you know about changes that may affect your current plan.

Revisit your existing plan

Think about how well your coverage supported your medical needs throughout the year. Do you need to adjust your plan due to changes in your health (e.g., discontinuing a medication or starting a new one)?