Medicare Annual Notice of Change
If you have a Medicare Advantage Plan or Medicare Part D prescription drug plan, you’ll receive an important document every fall called your Annual Notice of Change (ANOC). It may look like just another piece of Medicare mail, but don’t toss it in a drawer! The ANOC tells you what is changing with your plan for the upcoming year—and those changes could affect what you pay and the doctors, hospitals, pharmacies and medications you use.
What Is an ANOC?
The Annual Notice of Change explains changes to your Medicare plan that take effect in January. These may include changes to your monthly premium, deductible, copays, coinsurance, maximum out-of-pocket costs, prescription coverage, provider networks and extra benefits. Your plan may have the same name next year, but that doesn’t necessarily mean everything will stay the same. That’s why I encourage my clients to take a few minutes each fall to look over their ANOC.
What Should You Look For?
Medications - If you take prescription drugs regularly, make sure they will still be covered next year. Check whether they have moved to a different tier and whether your copay or coinsurance has changed. It’s also a good idea to make sure your preferred pharmacy is still part of the plan’s network.
Doctors and hospitals - If you have a Medicare Advantage Plan, check that the doctors and facilities you use are still participating in the plan. Provider networks can change from year to year. Doctors and join or leave the network.
Costs - Don’t focus only on the monthly premium. Take a look at the deductible, copays, coinsurance and maximum out-of-pocket amount. A plan with a low premium isn’t necessarily the least expensive plan for you once you consider your healthcare needs.
Extra Benefits - Don’t forget about the benefits you actually use. Medicare Advantage plans may offer additional benefits such as dental, vision, hearing, fitness or over-the-counter benefits, but these can change from year to year as well.
Does This Mean You Should Change Plans? Not necessarily!
If you review your ANOC and everything still looks good, your current plan may continue to be a good fit. But if you see reforms that concern you—especially changes to your prescriptions, doctors, hospitals or out-of-pocket costs—it may be worth comparing your options. This is why I always tell people: Don’t automatically keep your plan, but don’t automatically change it either. Review it first. Remember, other plans have made their revisions too! Your plan may still be the best option.
When Can You Make Changes?
The Medicare Annual Enrollment Period runs from October 15 through December 7 each year. This is the time when you can review your Medicare Advantage and Part D options and make changes for the following year, with changes generally taking effect January 1, 2027. You don't have to wait until December to start looking. In fact, the sooner you review your ANOC, the more time you have to ask questions and make an informed decision.
The Bottom Line
Your Medicare plan isn't a “set it and forget it” decision. Plans change. Plans can terminate. Your healthcare needs may be different. Your prescriptions can change.
So when your Annual Notice of Change arrives this fall, take a few minutes to open it and see what’s happening. If everything still works for you, that's great! But if something has been altered that you are unhappy about, you’ll have time to explore your options.
If you have questions about your ANOC or would like help understanding your Medicare options for 2027, I’m happy to help.
Diane Andree ABC Medicare Plans Broker 631-337-3625
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