Medicare Plan Review: Why Annual Updates Matter for Your Coverage
Every year, Medicare plans change and if you don’t review your coverage, you could be left paying more than necessary or losing access to important benefits. I see it happen all the time. That’s why I emphasize an annual Medicare plan review. It’s the best way to protect your health, your wallet, and your peace of mind.
Medigap Plans: Stable but Worth Watching
If you’re on a Medicare Supplement (Medigap) plan, the good news is that these are lifetime plans. Once you’re in, you don’t need to make annual changes unless premiums start to climb. Plan F, which covered everything, is no longer available to people who went on Medicare after January 1, 2020. If you still have it, you’ve probably noticed those premiums creeping up. That’s why many people are moving to Plan G. The only difference is a $257 annual deductible, but the savings often outweigh the cost.
For those looking to save even more, Plan N is an option. You’ll have small copays $20 for doctor visits and $50 for the ER and potentially a 15% excess charge. But switching from one Medigap plan to another requires medical underwriting unless you’re still within your six-month open enrollment. That means answering 30–35 health questions. If you don’t pass, don’t worry your current plan stays in place.
Part D Drug Plans: Always Review Annually
Prescription coverage under Part D changes every year. Formularies, tiers, deductibles, and copays all shift, which is why I recommend a fresh review every fall. Starting in 2025, drug costs will be capped at $2,000 annually, rising slightly to $2,100 in 2026. That’s a big relief for anyone on expensive medications.
But keep in mind: the deductible is rising, too from $590 in 2025 to $615 in 2026. If your medications are bumped to a higher tier, your costs could increase significantly. Reviewing your plan ensures you’re not surprised come January.
Medicare Advantage Plans: Expect Changes Every Year
Unlike Medigap, Medicare Advantage (MA) plans change every single year. They can be discontinued, networks can shift, and financial terms can increase. In fact, 1.8 million people lost coverage in 2024 due to discontinued MA plans, and we expect similar numbers going forward.
Networks also change. Doctors or hospitals may drop off your plan, especially if you’re in an HMO where out-of-network care isn’t covered. Premiums, copays, and out-of-pocket limits can all creep upward, so you have to check if the plan is still affordable.
And don’t forget the perks. Dental, vision, and hearing benefits vary widely sometimes generous, sometimes bare bones. If you rely on those perks, it’s crucial to confirm they’re still offered for the coming year.
The Role of ANOC Letters
Between September 15 and October 15, you’ll get your Annual Notice of Change (ANOC) letter from your carrier. This is your roadmap for what’s changing in the year ahead. It’s important to read every line — even small adjustments in deductibles or networks can impact your coverage.
If you don’t like what you see, you can make changes during the Annual Enrollment Period, which runs October 15 to December 7. Any changes you make go into effect on January 1 of the following year.
Bottom Line: Don’t Skip the Review
Here’s the truth: Medicare isn’t “set it and forget it.” Your health needs change, and so do the plans. Whether it’s Medigap, Part D, or Medicare Advantage, reviewing your coverage annually ensures you’re not overpaying or missing out on benefits.
At MedicareSchool.com, we help people every day compare plans, check formularies, and understand changes. A quick review can save you hundreds sometimes thousands each year.
