FAQ: Medicare Annual Notice Of Change Letter

by Peggy Gawley

What is an ANOC letter?

The ANOC, also known as your Annual Notice of Change, is a letter your Medicare plan will send you each year. It explains any changes in coverage, costs or networks that will take effect on January 1 of the following year.

Who will receive the ANOC letter?

If you are enrolled in part A, B and a Medicare Advantage plan or a Part D prescription drug plan, you will receive this annual letter in the mail. IMPORTANT: If you have a Medicare supplement/Medigap private insurance plan, you will not receive this notice since Medigap plans do not incur annual changes to plan benefits.

When will I receive my ANOC letter?

Medicare guidelines require the letter to be sent annually in the fall. You should anticipate receiving your letter(s) in September each year.

Is it that important to review my plan changes based on the ANOC letter?

Medicare drug plans and Medicare Advantage plans can make changes to your coverage, including raising the premium, increasing your deductible or copays, adjusting what drugs are in your formulary, and more. Understanding this timing is critical because – it is common for drug plans to be dropped or revised, which can lead to automatic enrollment in a different drug plan from the same company. This can mean increased costs.

What are examples of my health plan or drug plan changes?

• Premium increase. • Deductible increase. • Copay increase. • Network changes – your pharmacy or doctor is no longer in your network or is no longer a preferred provider. • Formulary changes – A formulary is a list of covered drugs.

Your medications may no longer be covered or may be in a different tier than before, meaning they will cost more at the pharmacy.

What should I do with my ANOC letter?

Do NOT throw it away. Read through your ANOC to understand all your plan changes. If you do not review your plan, you may get changes that will affect you.

More information from Medicare.gov

Can I work full time while on Medicare?

Yes! You can work full time while on Medicare. You can also carry both employer coverage and Medicare Part A coverage. When you retire or lose your group coverage, you can then enroll in Medicare Part B. You will also have the opportunity to enroll in Medicare Advantage or Medigap.

Do I have to sign up for Medicare if I have private insurance ?

You are not required to enroll in Medicare if you have private insurance. However, you may face late enrollment penalties. You could also end up paying more for similar (or better) coverage. In addition, if you have an Affordable Care Act (ACA) plan when you qualify for Medicare, you will no longer be eligible to receive ACA subsidies.

What does Medicare cover?

The original Medicare program comes with hospitalization insurance (Part A) and medical insurance (Part B) for services such as doctor’s visits, lab tests, and outpatient services.

Does Medicare cover prescription drugs?

Original Medicare does not cover most prescription drugs you purchase at a pharmacy. Private insurance companies sell Medicare Part D drug coverage that you can add to Original Medicare. If you opt for Medicare Advantage coverage, most plans include prescription drug coverage. Be sure to evaluate the plan details for coverage information.

Learn more at www.medicare.gov.

Your current plan typically automatically renews on January 1 unless your ANOC letter states that the plan is no longer offered, or they may automatically switch you into a different plan. It is recommended to review your plan each year. If you review your ANOC letter and are pleased with the benefits and changes for the next year, you simply do nothing.

What if I do not receive my ANOC letter?

If you do not receive a letter by September 30, you should contact your plan. Without your current address on file, you will not receive the ANOC letter.

When can I review plans for 2023?

The Medicare Annual Enrollment Period (AEP) is October 15 – December 7. You can start running comparisons for next year’s plans on October 1, but you cannot enroll in a new plan until October 15. Even if your plan is not changing or you are OK with the changes, you can still shop the market and ensure you still have the plan you prefer.

Can I change plans outside of Medicare open enrollment?

Not unless you have special circumstances, such as moving out of the service area. You must have a Special Enrollment Period (SEP) to change plans.

Peggy Gawley joined Ollis/Akers/Arney in 2014 as an advisor focusing on Medicare and long-term care. She has more than 26 years of experience in the healthcare industry. She is licensed in life and health and certified in long-term care, Medicare Part D, AHIP, healthcare marketplace, Medicare fraud, waste, and abuse programs. She advises her clients on all Medicare plan types, including long-term care plans. Peggy shares her knowledge of the industry by volunteering her time as an instructor on a national radio show helping answer questions about Medicare. To add to her accomplishments, Peggy was named 2016 Trusted Adviser for Insurance in the Springfield Business Journal and was a guest speaker at the 2016 National Medicare Summit in Kansas City.

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