Promotions abound for enrolling in Medicare but did you know you can opt out of Medicare?

WHEN CAN I DO IT?

The Medicare Advantage Disenrollment Period (“MADP”) runs from January 1st through February 14th.

AM I ELIGIBLE?

You must have a private Medicare plan (often referred to as Medicare Part C or a Medicare Advantage plan).

WHEN IS THE CHANGE EFFECTIVE?

Dropping private coverage during MADP in favor of traditional Medicare will take effect the first day of the following month. Those making the switch in January will see coverage change on February 1st while those making the switch in February will see coverage change on March 1st.

WHY DO IT?

Common reasons include (1) doctors are no longer “in-network” resulting in increasing out-of-pocket costs, (2) prohibitive cost of care for existing or increasingly complex health circumstances, (3) increasing co-payments, (4) required care may not be covered and (5) the annual open-enrollment period was missed.

WHAT ABOUT PRESCRIPTION DRUGS?

If the forfeited Medicare Advantage plan includes prescription drug coverage (which most do) then it’s important to enroll in a Medicare-approved Stand Alone Prescription Drug Plan (commonly referred to as Medicare Part D). Failing to do so will result in penalties and higher out-of-pocket costs.

SHOULD I BUY MEDIGAP COVERAGE?

Since traditional Medicare does not cover 100% of costs there will always be co-payments, co-insurance and deductibles. Similarly Medicare does not put a ceiling on out-of-pocket costs. The MADP doesn’t guarantee Medigap eligibility so getting approval is important prior to canceling any currently in-force private coverage. Go here for help in selecting a Medigap plan.

WHERE CAN I GET MORE INFO?

Call (800) MEDICARE (24 hours per day / 7 days per week). Ironically the best people to provide assistance are the people running the program. Uncle Sam gets it right for a change!