People receive so many Medicare mailings throughout the year that important notices can be easy to overlook. However, one document that deserves attention is the Annual Notice of Change (ANOC).
The ANOC explains updates to your Medicare Advantage plans or Part D coverage for the coming year, helping you stay on top of your Medicare plans before enrollment season. Reviewing it before the Medicare Annual Enrollment Period gives you time to decide whether your current plan still fits your needs. Brooks, Todd & McNeil’s local agents can also help you understand your ANOC and explore Medicare supplement plans in Connecticut.
What Is a Medicare Annual Notice of Change?
The Medicare ANOC arrives each fall, usually in September. Medicare Advantage and Part D plan providers — operating under rules set by the Centers for Medicare and Medicaid Services — send it to current members to explain changes that start on January 1.
Because providers review and update plans annually, your costs, benefits, provider networks, and covered medications may change from year to year. The ANOC may outline changes to:
- Monthly premiums
- Deductibles
- Copays and coinsurance
- Prescription drug formularies
- Provider and hospital networks
- Dental, vision, hearing, and other supplemental benefits
- Out-of-pocket maximums
That is why the ANOC is important to review every year. Whether you have Original Medicare with Parts A and B, or a Medicare Advantage Part C plan, it gives you a clearer picture of what your coverage may look like in the new plan year.
Medicare is a federal health insurance program available to most people once they sign up for Medicare at 65, but eligibility can also extend earlier. People who receive Social Security disability benefits for 24 months, those with end-stage renal disease (permanent kidney failure), and those diagnosed with ALS (Lou Gehrig’s disease) may qualify for Medicare earlier through Social Security Disability Insurance. No matter how you became eligible, the ANOC affects your plan the same way each year.
What Types of Medicare Plan Changes Should You Look For?
Small changes can affect your healthcare budget and access to care. Focus on these key areas when reviewing your ANOC.
Monthly Premiums
A small increase in your monthly premium can affect the household budget over 12 months, especially for retirees, married couples filing jointly on a fixed income, and those who rely on Social Security benefits to cover routine expenses.
Prescription Drug Coverage
Drug formularies may change from year to year. A medication covered at a preferred tier now may move to a higher-cost tier next year. If you take several maintenance medications, even a one-tier change to your prescription drug coverage can increase your out-of-pocket costs, particularly if your Medicare Part D plan adjusts its drug coverage rules.
Out-of-Pocket Maximums
Medicare Advantage plans set annual out-of-pocket limits, separate from the annual deductible required under Medicare Part A and Part B. If this limit increases, you could face higher healthcare costs for serious or ongoing care, including hospice care or skilled nursing facility care.
Provider Network Participation
Doctors, specialists, hospitals, and health systems can leave plan networks. If one of your preferred health care providers no longer accepts Medicare or is no longer in network, you may need to choose a new provider or pay more than the Medicare-approved amount for care.
Supplemental Benefits
Many Medicare Advantage plans include supplemental insurance benefits such as dental care, vision, hearing, durable medical equipment, fitness programs, or transportation assistance. These benefits can change, so review this section carefully if you rely on them.
What Can Happen If You Ignore Your ANOC?
Many people discover changes in Medicare coverage only after they seek care or fill a prescription.
Consider a few common situations:
- A specialist you have seen for years leaves your network. You schedule an appointment expecting coverage, but you end up paying higher out-of-network costs or must find a new provider.
- A prescription medication moves to a different formulary tier. At the pharmacy, you find that your monthly medication now costs much more than it did last year.
- Your plan increases certain copays or deductibles. The change may look minor in the ANOC, but repeated doctor visits or ongoing treatment can add up quickly.
These issues are easier to address when you catch them before the new plan year begins.
What Should You Do After Receiving Your ANOC?
Read your notice as soon as it arrives. Compare plans by reviewing your current benefits against the updates listed in the document, then consider whether your healthcare needs, prescriptions, or provider preferences have changed this year.
You should also review:
- Current medications
- Preferred doctors and specialists
- Hospital preferences
- Anticipated healthcare needs
- Total projected annual costs
The Medicare Annual Enrollment Period runs from Oct. 15 to Dec. 7 each year. During this time, you can compare plans and make changes for coverage starting Jan. 1.
If you are unsure how plan changes affect you, talk to a licensed Medicare professional to review your options.
Why Consumer Access to Medicare Advisors Matters
Medicare plan changes are complex. Many people rely on licensed Medicare agents to explain differences, compare options, and identify changes that affect healthcare costs.
Recent industry changes have reduced compensation for Medicare advisory services. Consumer advocates and insurance professionals warn that this shift could limit access to personalized guidance, especially for seniors who need help with complex Medicare decisions. Brooks, Todd & McNeil recently discussed this issue in greater detail here.
A Change.org petition provides more information about the issue. By participating, you can help protect access to licensed health insurance advisors and the personalized guidance many Medicare beneficiaries rely on.
A Few Minutes of Review Can Prevent Costly Surprises
Medicare plans change every year, even if you keep the same coverage. The Annual Notice of Change gives you advance notice and a chance to decide if your plan still fits your needs.
Do not set the document aside. A short review now can help you make confident decisions before the new plan year begins.
If you have questions about Medicare plan changes, want to compare plans, or need help reviewing your coverage options before the Annual Enrollment Period ends, contact Brooks, Todd & McNeil. Our team can help you understand your medicare coverage, spot potential medicare fraud, and make informed Medicare decisions for the coming year. You can also contact Medicare directly at 1-800-MEDICARE for official plan information.
About the Author
Stephen G. Todd, CPCU CIC is owner, President and CEO of Brooks, Todd & McNeil, bringing more than three decades of experience across underwriting, claims, and agency leadership. He began his career with Travelers Insurance Company, where he held roles in Home Office Finance, National Account Claims litigation, before serving as a commercial lines underwriter with American States Insurance Company. Since joining Brooks, Todd & McNeil in 1991, Stephen has led key operational areas and helped drive innovation, including the development of the insurance industry’s first real-time personal lines comparative rating system. A recognized industry leader, he has served on numerous carrier advisory councils and remains actively involved in both professional and community organizations.
About Brooks, Todd & McNeil
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