Open Enrollment is Here!

Mary Kirtland |

I know it’s been awhile since the last Short Squeeze but things have been very busy here at HQ. First and foremost, I wanted to thank everyone that took the time to call into our quarterly conference call last Friday. Given the recent market volatility I was glad that Raymond James Chief Investment Strategist Jeff Saut was able to call in and provide all of us with his valuable insight.

For those of you that missed the call we are working to secure Jeff for a “live” presentation and breakfast this January. I know that’s a couple of months away but we HIGHLY recommend everyone attend. More details will follow.

Moving away from the recent ugliness in the markets, I would like to talk about something equally as important as market performance, that is your health or should I say healthcare.

Medicare Open Enrollment begins October 15th.

The Medicare open enrollment period is the time during which people with Medicare can make new choices and pick plans that work best for them. Each year, Medicare plans typically change what they cost and cover. In addition, your health-care needs may have changed over the past year. The open enrollment period is your opportunity to switch Medicare health and prescription drug plans to better suit your needs.

Now is a good time to review your current Medicare plan. As part of the evaluation, you may want to consider several factors. For instance, are you satisfied with the coverage and level of care you're receiving with your current plan? Are your premium costs or out-of-pocket expenses too high? Has your health changed, or do you anticipate needing medical care or treatment? Open enrollment period is the time to determine whether your current plan will cover your treatment and what your potential out-of-pocket costs may be. If your current plan doesn't meet your health-care needs or fit within your budget, you can switch to a plan that may work better for you.

The Medicare open enrollment period runs through December 7th. Any changes made during open enrollment are effective as of January 1, 2015.

During the open enrollment period, you can:

  • Join a Medicare Prescription Drug (Part D) Plan
  • Switch from one Part D plan to another Part D plan
  • Drop your Part D coverage altogether
  • Switch from Original Medicare to a Medicare Advantage Plan
  • Switch from a Medicare Advantage Plan to Original Medicare
  • Change from one Medicare Advantage Plan to a different Medicare Advantage Plan
  • Change from a Medicare Advantage Plan that offers prescription drug coverage to a Medicare Advantage Plan that doesn't offer prescription drug coverage
  • Switch from a Medicare Advantage Plan that doesn't offer prescription drug coverage to a Medicare Advantage Plan that does offer prescription drug coverage

What's new in 2015?

Most Part D plans have a temporary limit on what a particular plan will cover for prescription drugs. In 2015, this gap in coverage (also called the "donut hole") begins after you and your drug plan have spent $2,960 on covered drugs. It ends after you have spent $4,700 out-of-pocket, after which catastrophic coverage begins. However, part of the Affordable Care Act gradually closes this gap by reducing your out-of-pocket costs for prescriptions purchased in the coverage gap. In 2015, you'll pay 45% of the cost for brand-name drugs in the coverage gap and 65% of the cost for generic drugs in the coverage gap. Each succeeding year, out-of-pocket prescription drug costs in the coverage gap continue to decrease until 2020, when you'll pay 25% for covered brand-name and generic drugs in the gap.

We would recommend reviewing the coverage you have now and comparing it to other Medicare plans that are available during open enrollment. We are here to help should you have any additional questions. You also can call 1-800-MEDICARE or visit the Medicare website, www.medicare.gov for additional information.

Until next time.

-Brett C. Hixon CFP®