Four Reasons to Review Your Medicare Options Every Year

You may be surprised that almost half of Medicare beneficiaries do not review or even compare their coverage options each year during open enrollment.1   Navigating the Medicare landscape can be challenging, and it's easy to overlook when there are more engaging tasks at hand. However, ensuring you have the most suitable coverage each year is vital. Here are four compelling reasons why all Medicare beneficiaries should make it a priority to review their Medicare selections annually.

#1. Medicare Benefit Changes

Medicare benefits can change due to changes in the health care industry, regulations, and other external pressures.  Deductibles, prescriptions, and premiums can be affected by inflation and doctor and specific drug availability may change.

One good example of change is in 2023 vaccine coverage became more comprehensive and the cost of insulin was capped at $35/month for Medicare beneficiaries.  (Part of the Inflation Reduction Act, which also allowed Medicare to negotiate the price of certain prescription drugs over the next few years.)

#2. Life Changes

Lifestyle changes can affect the value of your coverage.  Maybe you have moved or plan to travel internationally, or you are now interested in finding out more about vision and dental plan coverage.

If you are now subject to Required Minimum Distributions, they may impact your Medicare premiums.

#3. Health Changes

Your health status is not static.  A new diagnosis / condition may call for a change in coverage.  An injury or fall during the year may mean more upcoming doctor visits and tests.  Or a new diagnosis may equate to more prescriptions or seeing a specialist.

As your anticipated health care needs change you will want to make sure your treatment is covered as cost efficiently as possible.

#4.  Health Care is a Significant Expense in Retirement

The Medicare plan you select will impact the total amount you spend on health care.  It impacts everything from premiums, to co-pays, to out-of-pocket totals for unforeseen health care needs.  You will want to consider the trade-off between a tighter cap on potential costs versus smaller up-front costs.

Additionally, changes in income can impact your cash outlay.  Medicare coverage should be aligned with your health needs while also considering your financial goals.

We Will Review Your Options Together

Reviewing your Medicare options annually is a crucial step in ensuring that your healthcare coverage aligns with your changing circumstances. Whether it's adjusting to Medicare benefit changes, adapting to life changes, responding to shifts in health status, or managing healthcare expenses in retirement, an annual review empowers you to make informed choices. If you have questions or need assistance with your Medicare selection, Lake Tahoe Wealth Management offers valuable resources to help you align your choices with your life and financial plan.

1 Kaiser Family Foundation Study, “More Than Half of All People on Medicare Do Not Compare Their Coverage Options Annually,” Nov. 1, 2022, https://www.kff.org/medicare/issue-brief/more-than-half-of-all-people-on-medicare-do-not-compare-their-coverage-options-annually/