A Little Lost When it Comes to the Medicare Advantage Disenrollment Period? 4 Steps to Finding Your Way

Are you feeling like a lost babe in the woods when it comes to the Medicare Advantage Disenrollment Period (MADP)? Don’t.

MADP runs from January 1 through February 14, 2012 and is designed to give you the opportunity to cancel your Medicare Advantage plan if it’s not to your liking, and be placed back on “Original Medicare.” You’ll also have the option to enroll in a stand-alone Medicare Part D Prescription Drug Plan (PDP).

If you’re thinking about using the MADP and concerned about how best to proceed, here are four steps I’d encourage people to take:

1.  Know what ”Original Medicare” (Parts A and B) doesn’t cover:  Medicare Advantage and original Medicare (Parts A and B) both have deductibles and coinsurance. But, Original Medicare does not have a cap on how much you may have to spend out of your own pocket each year if you get sick or injured. Medicare Advantage on the other hand, does have a cap, per the 2010 health care reform law. Thanks to health reform, all Medicare Advantage plans have to place a $6,700 limit on what you could be required to spend out of your own pocket for covered medical services. And, original Medicare does not include prescription drug coverage.
2. Make a list of the benefits you want to keep: It’s never a bad idea to make a list.  In the case of MADP, make a list of benefits your Medicare Advantage plan has that you’d like to keep, and then try to create a back-up plan to make sure you get those benefits. For example, talk to your doctor to be sure they’ll accept the health insurance you’re planning to switch to. And avoid gaps in drug coverage by searching for affordable prescription drug coverage  through a stand-alone Medicare Part D plan that covers the specific drugs you’re currently taking.
3. Investigate Medicare Supplement Plans – When you revert original Medicare (parts A and B), you may want to investigate  Medicare Supplement plans to provide additional coverage. The majority of states offer 10 types of Medicare Supplement plans: A, B, C, D, F, G, K, L, M and N, although some plans types aren’t available everywhere. Each type of plan has to provide the exact same level of supplemental coverage.  For example, an F plan from one insurer must by law, provide the same level of coverage as an F plan from another insurer. With benefit set by law, We encourage you to compare plans side-by-side at PlanPrescriber.com. Medicare Supplements can be a good alternative for people  canceling a Medicare Advantage plan. NOTE: After your first three months on Medicare Part B, Medicare Supplement plans are medically underwritten, which means some people may not qualify.
4. Don’t forget benefits like dental and vision care: There are many Medicare Advantage plans that include coverage for routine dental and vision needs. Original Medicare and Medicare Supplement plans do not include these benefits. If you choose to drop a Medicare Advantage during the MADP you may want to investigate stand-alone coverage for routine vision and dental care.

If you follow these tips, you should be well prepared for the ADP.

 Other recommendations: Thinks outside the Medicare box. Insurance products exist today that are not related to Medicare, but that you can still take advantage of. For example, accident and critical illness insurance policies are now available in many states. And these plans typically give you money directly when you have a claim and allow you to spend the money on whatever you need it for. These aren’t comprehensive insurance products, but they can help you pay for things like groceries, insurance deductibles or coinsurance, rent or even make a car payment if needed.

Medicare has neither reviewed nor endorsed this information.