The complexity of Medicare open enrollment

Medicare open enrollment period is fast approaching. This year, the window opens on Oct. 15 and closes on Dec. 7. Per Medicare.gov, there are actually five different enrollment periods.

The first is the initial enrollment period for people who are new to Medicare. This period starts three months before you get Medicare and ends three months after you get Medicare. This is typically the three months before and after your 65^th birthday. You can join any plan. You need Part A (hospital insurance) and Part B (medical insurance) to join a Medicare Advantage plan. You need either Part A or Part B to join a Medicare drug plan.

The second is the initial enrollment period for those people who are new to Part B (medical insurance) if you obtain Part B (medical) after your Part A (hospital) coverage begins. This period is the three months before your Part B starts. You can join any Medicare Advantage plan with or without drug coverage.

The third is the primary topic of the opening paragraph: the open enrollment period that occurs annually at the same time of year. During this time, you can join, drop, or switch to another Medicare Advantage plan (or add or drop drug coverage); switch from Original Medicare to Medicare Advantage, or from a Medicare Advantage plan to Original Medicare; or join, drop, or switch to another Medicare drug plan if you’re in Original Medicare. Your coverage begins January 1 of the following year.

The fourth is the Medicare Advantage open enrollment period, applicable only to people who are already in a Medicare Advantage plan. This period is from Jan. 1 through March 31 of each year, or within the first three months after you get Medicare. In this window, you can switch to another Medicare Advantage plan with or without drug coverage, or drop your Medicare Advantage plan and return to Original Medicare. You’re also able to join a separate Medicare drug plan.

Finally, the fifth period is the special enrollment period that opens for certain situations that might occur in your life like moving to a new address, losing or changing your current coverage, getting Medicaid, etc. In general, you can join a Medicare Advantage plan with or without drug coverage or a Medicare drug plan, or switch to another plan.

Medicare has historically been a very confusing system. You can make some big mistakes that can possibly cause permanent financial ramifications. So, be sure you get things right from the outset. Seek specialized counsel who can answer your questions based upon your current situation and expected possibilities.

Gulf County resident Walter L. Woodrick is a certified financial planner practitioner, and the author of two books. His website is WoodrickFinancial.com, his phone is 1-855-WOODRICK, and his text number is 850.724.1369. Securities and advisory services are offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC. The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. #631418-1