Switching Medicare Plans? See How Much You Could Save Next Year

Contrary to popular belief, enrolling in Medicare isn’t a “set it and forget it” process. It’s vital to review your coverage annually to ensure that you’re still on the best plan(s) for your needs, in addition to continuing to minimize costs while maximizing coverage.

With the right knowledge under your belt, and with a handy Medicare plan finder and comparison tool like Healthpilot , switching plans could save you hundreds (or even thousands ) next year; so what are you waiting for?

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Can You Switch From One Medicare Plan to Another? Yes! Expanding on what we mentioned above, it’s not guaranteed that you will need to switch your Medicare coverage each year, but it’s strongly recommended to review your coverage details to ensure that you are still on the optimal plan for your unique situation.

There are specific periods where you will have the opportunity to switch plans, remove coverage, or add coverage (we’ll go into more detail on that in just a second). What you should keep in mind is that there are varying levels of flexibility when it comes to switching Medicare plans depending on the specific change you are trying to make to your coverage.

Is There a Penalty for Switching Medicare Plans? While switching Medicare plans in itself cannot incur a penalty, it’s crucial to be mindful of timing and coverage gaps .

For example, Medicare Part B and Medicare Part D incur late enrollment penalties (that being said, if you’re reading this article, you’re likely already enrolled in Medicare).

When it comes to switching Medicare plans, however, turn your attention to the timing of your switch and be sure to avoid any coverage gaps or lapses in coverage.

When Can I Switch Medicare Plans? If you’re looking to switch plans and not just review your coverage, here are the key dates to keep in mind:

The Annual Enrollment Period (AEP) happens annually, and lasts from October 15th to December 7th. Any plan changes made during the AEP go into effect on January 1st of the following year. This is your opportunity to: Review your current coverage (this should be done annually regardless of intent to switch) Move from Original Medicare (Parts A and B) to Medicare Advantage (Part C) Choose a new Medicare Advantage plan (whether it be just a new plan or a completely new provider) Change, add, or remove Medicare Part D (Prescription Drug Plan) to your existing coverage Applicable only to those already on a Medicare Advantage plan, the Open Enrollment Period (OEP) runs from January 1st to March 31st each year. During your OEP, you can: Make a one-time switch from one Medicare Advantage plan to another (just like during the Annual Enrollment Period) Move from Medicare Advantage to Original Medicare The Special Enrollment Period (SEP) , as the name suggests, falls outside of the set of typical Medicare enrollment periods (meaning it has no set dates and depends solely on a case-by-case basis). The SEP can be triggered by a range of life events. Here are a few examples: Relocating to an area where your plan no longer applies Losing healthcare coverage through your employer No longer being eligible for Medicaid Qualifying for Medicare based on disability We’ll stress again how vital it is to keep these enrollment periods in mind when switching Medicare plans. The main situation you want to avoid finding yourself in is one where the end date of one plan doesn’t align with the start date of another, which can result in unexpected costs or lapses in coverage.

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How Much Can You Save by Switching Medicare Plans? Healthpilot has estimated that our customers save an average of $1,052.90* per year when switching Medicare Advantage plans.

Switching Medicare plans isn’t just about getting the right doctors or prescription drug coverage. There are a few ways that switching Medicare plans can result in significant cost savings ; let’s review a few examples:

Lower Monthly Premiums There may be a Medicare Advantage or Medicare Part D prescription drug plan out there that offers the same benefits at a lower monthly premium. By reviewing your benefits annually and making the switch (if relevant for your situation), you could see some serious cost savings.

Let’s say you switch from a plan with a $40 monthly premium to one with a $15 monthly premium. That’s already saving you $300 yearly.

Prescription Drug Savings Prescription drug coverage is more volatile than regular Medicare plans; drug formularies vary by plan, and prescription coverage can change as frequently as every year. When switching Medicare plans, consider checking to see if there’s a plan that covers your prescription at lower copays (this could save you hundreds, even thousands, of dollars).

Pro Tip: Prescription drug costs often make up a big part of beneficiaries’ medical expenses, which makes reviewing your drug coverage much more important.

Lower Out-of-Pocket Costs Switching to a plan with lower premiums isn’t the only way to save money on Medicare; look for plans with lower deductibles, copays, or out-of-pocket maximums. Savings at the pharmacy, doctor’s office, or hospital, over the course of a year, can still result in significant savings.

Other Cost-Saving Benefits Many Medicare Advantage plans offer additional coverage options. If you’re currently on an Original Medicare plan, or your Medicare Advantage doesn’t cover some of the things you still pay out-of-pocket for, switching to a plan that includes them could save you hundreds each year.

Plus, some Medicare Advantage plans can come with hidden costs that you may not have anticipated upon initial enrollment. If these are impacting your healthcare, consider switching to a different Medicare Advantage plan or moving down to Original Medicare.

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Biggest Mistakes People Make When Switching Medicare Plans We may have made it seem like an easy thing to do (and with Healthpilot’s Medicare plan comparison tool , it is) and a no-brainer, but there are some things to keep an eye out for when switching Medicare plans:

Forgetting to check the pharmacy network of your new desired plan . It’s a mistake to assume that your prescriptions will cost the same under a new plan. Formularies vary, and even small changes in copays or tiers can cost you hundreds of dollars a year. Focusing on premiums alone . A lower monthly premium might look attractive with no added context, but it’s not the whole picture. Deductibles, copays, and out-of-pocket maximums can drive up your total costs if not compared carefully. Forgetting about provider networks . On a similar note to formularies and drug coverage, Medicare Advantage plans have provider networks. If you mistakenly switch to a plan where your doctor or hospital is out-of-network, you will pay higher costs for care (or have to find a completely new set of providers). Missing enrollment deadlines . Refer to the enrollment periods covered earlier in this article for a quick reference. Missing these enrollment periods have the potential to lock you into a plan you don’t want for an entire year. Assuming coverage won’t change . If we haven’t stressed this enough already, reviewing your plan annually is just as (if not more) important than switching to a new one that fits your needs better. Plans update their costs and coverage every year, which is why carefully reviewing the Annual Notice of Change (ANOC) is so important. Pro Tip: Before switching, make a checklist of your healthcare needs, current providers, and prescriptions. Compare plans side by side using a Medicare plan finder and comparison tool like Healthpilot for maximum assurance and to avoid surprises.

Switching Medicare Plans: Where to Go From Here Regardless of whether you’re happy with your current healthcare or not, we strongly recommend at least reviewing your Medicare plans and coverage annually. And with a tool like Healthpilot to guide you along the way, it’s never been easier to uncover potential savings without making significant changes to your coverage.

*Note: Healthpilot conducted an internal study of our customers from October 2024 to December 2024 and compared their previous Medicare Advantage plan with the Medicare Advantage plan they chose to enroll in through Healthpilot. We calculated savings by taking the difference in total estimated Medicare plan costs between both plans. Our costs estimates include plan premiums and Part B Give back benefits, drug costs, and out of pocket medical spending. We estimated the costs for services the customer would likely obtain utilizing our proprietary technology that performs predictive modeling based on the information the customer shared with Healthpilot.

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