Medicare was introduced in 1965 when Lyndon B. Johnson was in our presidential office. Medicare has changed since it originated. It started as consisting of only Medicare Part A and Medicare Part B, which we now refer to as Original Medicare. Since it began in 1965, it has not reduced its coverage but has created and implemented more plans to provide wider coverage for Medicare recipients. You now have other plan options, such as Medicare Advantage plans, Medigap or Medicare Supplemental plans, and Medicare Part D, which covers prescriptions. In this sense, Medicare has changed over the years.
Medicare coverage that is available now usually does not change from year to year. If it does, that insinuates that Medicare coverage is expanding, not being reduced.
Changes to Medicare Advantage
The biggest change that has occurred in Medicare coverage was in 2006, when Medicare Part D, or Medicare prescription coverage, was introduced into Medicare coverage. The introduction of Medicare Advantage plans was also a large milestone in widening Medicare coverage for recipients. Medicare Advantage, or Medicare Part C, offers more coverage for services than Original Medicare does, such as:
- Adult daycare health services
- In-home support services
- Meal delivery
- Transportation for health appointments
If you are enrolled in a Medicare Advantage plan or a Medicare Part D stand-alone plan, then you will receive ANOC, also known as an Annual Notice of Change. You will usually receive this letter in September. It will inform you of any changes made to your coverage that will begin on January 1.
Changes that are likely to occur to your Medicare Advantage plan include:
- Name of plan changes
- Change in the service area
- Change in out-of-pocket costs related to your plan
- Formulary
You will find this information in your ANOC letter.
Changes to Medicare Part D
If any aspect of your Medicare insurance coverage changes from year to year, it will be your Medicare Part D prescription drug plan. Each Medicare Part D plan has its formulary, which is a list of prescription medications that your plan will cover. Due to the discovery of never-changing pharmaceutical information in the health care world, your formulary is subject to change from year to year. You are usually protected from sudden, negative impacts that your plan might implement to your Medicare benefits and prescription drug coverage.
Changes in Medicare Costs
Since funding for Medicare is now a part of the government’s required spending, you are more than likely not going to experience any cutting in the expenses spent on Medicare. This requirement is written by governed law.
While it is true that premiums and deductibles for Medicare Part A and Part B may fluctuate, they will not be by a large amount. Changes to Medicare Part A and Part B cannot occur without being passed by government legislation. If you are a part of a Medicare Advantage plan, your premiums may lower year after year.
Medicare coverage does have the potential to change year after year, but we’re here to help! Read your ANOC letter carefully and reach out to us to ensure you understand any changes that may occur to your Medicare insurance plan.
