Whether you are on Medicare or a Medicare Advantage program, open enrollment allows you the opportunity to review your plan and make necessary changes so you are prepared for “What Ifs’. To confuse things more, Medicare open enrollment is also known as the annual election period (AEP) or yearly coordinated election period. It also gives you time to review your current savings and work toward meeting goals you set financially and professionally, as well as insurance coverage that will protect you. The dates of open enrollment are October 15 through December 7.
What plan changes can you make during the Medicare open enrollment period?
- Switch from Original Medicare to Medicare Advantage (as long as you’re enrolled in Medicare Part A and Part B and live in the Medicare Advantage plan’s service area).
- Switch from Medicare Advantage to Original Medicare (plus a Medicare Part D plan (PDP)) and possibly a Medigap Plan. A new Medigap policy might require medical underwriting, depending on the state you live in and if you have pre-existing conditions.
- Switch from one Medicare Advantage plan to another.
- Switch from one Medicare Part D prescription drug plan to another.
- Enroll in a Medicare Part D plan if you didn’t enroll when you were first eligible for Medicare.
This is a big year for Medicare, Medicare Advantage Programs, and Prescription Drug Plans changes. This link will take you to the changes and why they are happening. https://www.medicareresources.org/medicare-open-enrollment/#2025
If you are healthy, these changes might not impact you, but if you have a chronic or complex health condition, they could, so it is important to review your plan with the new changes.
Another important point I want to remind you is that we all need to prepare for an emergency. We never know what will happen down the road—sudden car repairs, medical emergencies, or job loss can all lead to unexpected debt if you’re unprepared. Predicting how much these or other emergencies could cost is difficult, but keeping three to six months’ living expenses is a good goal.
We all think we are prepared to have insurance for our cars, homes, and health care, but even with the best insurance, you will have out-of-pocket costs. Having savings set aside will help you and your family handle out-of-pocket costs. The question is, how much will you need?
Last, if you are under 65, I strongly recommend looking into Disability Insurance. Disability insurance will provide income in case you can’t work. Having a disability policy gives you peace of mind that at least can help in an emergency.
Here are some references to help you with your review.
Stay well!
References:
Medicare Open Enrollment 2025 Guide: https://www.medicareresources.org/medicare-open-enrollment
PAN Foundation: https://www.panfoundation.org/everything-you-need-to-know-about-medicare-reforms
NERD Wallet: Calculator to estimate what you need in an emergency. https://www.nerdwallet.com/article/banking/emergency-fund-calculator
Disability Insurance: Why You Need It and How to Get It: https://www.nerdwallet.com/article/insurance/disability-insurance-explained
