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Medicare AEP vs OEP: What’s the Difference?
As if Medicare weren’t confusing enough, everywhere you look there are confusing acronyms! These two are particularly important to not confuse because they affect when you can change your plans based on your current enrollment. So, let’s jump right in.
AEP is the Annual Enrollment Period, which runs every year from October 15th to December 7th. It’s during this time that plan benefits for the upcoming year are announced. With Medicare Advantage and Part D plans, premiums could increase, benefits can change, and prescription drug formularies can be changed. AEP allows you to make multiple changes to your Medicare coverage. During this window of time, you can make one or more of the following changes:
-Switch from a Medicare Advantage plan to Original Medicare and vice versa
-Switch from one Medicare Advantage plan to another
-Switch from a Medicare Advantage plan without prescription drug coverage to a Medicare
Advantage plan with prescription drug coverage, and vice versa
-Switch from one prescription plan to another
OEP is the Open Enrollment Period, which takes place every year from January 1st to March 31st. To make changes during this enrollment period, you must already be enrolled in a Medicare Advantage Plan. You may consider taking advantage (no pun intended) of this election period if your provider network changed or your coverage isn’t as comprehensive as you’d like. Changes to Medicare plans made during this time will take effect the 1st of the following month of applying.
The main reason I find clients needing to utilize this time period is when they made a change during the fall enrollment period to a plan that didn’t live up to their expectations. This usually occurs when the change was made by someone they didn’t know (think Joe Namath commercials) or was scammed by a phone call from someone claiming to be from Medicare, Social Security, or their current Insurance plan. Please remember, none of these entities will EVER call you to switch plans. This is always a sure sign that you are being scammed. If in doubt, always, always hang up and call me.
What can Medicare Advantage beneficiaries change during the Open Enrollment Period? You can….
-Switch from one Medicare Advantage plan to another
-Switch back to Original Medicare
In Summary--Which Is Better, OEP or AEP?
The difference between these two periods is obvious. The AEP offers more options and flexibility than the OEP. The only reason for the additional enrollment period is because Medicare receives so many complaints calls during the first quarter of every year from beneficiaries indicating they were convinced by someone to switch plans and found out later they got bad information (think buyer’s remorse).
So, in a nutshell, the traditional time period to review and make changes to your plan has ended and your new plan (whether it’s your current plan or a new one) will take effect or renew on January 1st. If you feel like you got talked into switching plans, got scammed by one of the thousands of calls, emails, or TV commercials, or simply wish to try a new plan next year, OEP is for you.
As your trusted advisor, I can help you---call me today!
Changing your Medicare coverage, whether during the AEP or OEP can be tricky without the right advice and guidance. Whether you need help deciding when and what changes to make, or just want to be walked through the process, I am here for you.
Please feel free to call or email me anytime at the office (801) 487-2300 or email me at sharie@bowthorpeinsurance.com.
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