Medicare enrollees have the option to change their health coverage each year during fall open enrollment, which runs from Oct. 15 through Dec. 7. If you're on Medicare Advantage, you may be wondering if it pays to sign up for a new plan for 2025. Here are a few signs that you should at least consider a switch.
1. Your costs are rising
Many retirees live on a tight budget with little wiggle room. If that's your situation, and the cost of your Medicare Advantage plan is increasing in 2025, then that's reason alone to look at different plan choices.
You may especially want to consider getting a new plan if your Social Security cost-of-living adjustment won't be enough to cover that increase in cost. Next year, benefits are set to rise by 2.5%. But if your monthly benefit isn't that large to begin with, it may not amount to such a big increase.
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2. Your benefits are being reduced
The upside of choosing Medicare Advantage over original Medicare is that you may get access to a host of benefits that wouldn't otherwise be covered. In 2024, 97% or more of Medicare Advantage plans offer dental, vision, hearing, or fitness benefits, according to the Kaiser Family Foundation.
And those are considered more "standard" benefits for Medicare Advantage plans. Some plans go well beyond these perks, covering services that include home cleaning and meal delivery.
But if your Medicare Advantage plan is shedding some of those extra benefits in 2025, then you may want to make a switch. Having to pay out of pocket for certain services could hurt your finances more so than paying a higher premium for an Advantage plan with a wider scope of coverage.
3. Your favorite providers are moving out of network
Once you get used to seeing certain providers, it can be tough to make a switch. And also, if you have limited access to transportation, losing your preferred providers could mean struggling to take care of your health.
If your favorite doctors won't be in network on your plan next year, then it may be time to see about getting a new Medicare Advantage plan. Or, for even more provider choices, you may want to dump Advantage altogether and move onto original Medicare.
However, do keep in mind that original Medicare won't cover services like dental, vision, and hearing. And you'll also need to get a Part D drug plan on top of original Medicare.
You should also know that while Medicare Advantage plans typically have an out-of-pocket maximum that caps your spending each year, original Medicare does not. And while you can buy supplemental insurance, or Medigap, as an enrollee in original Medicare, if you're looking to do that after having been covered by an Advantage plan, you might struggle to secure affordable coverage. You may also be subject to a waiting period for a Medigap plan to cover certain conditions you have.
Choosing a new Medicare Advantage plan can be overwhelming. So don't wait until the tail end of open enrollment to get moving. Start reviewing your options in the coming weeks if it's clear that you need a change. That way, you can work your way through the process without undue stress, and without having to resort to a quick decision that ends up being the wrong one.
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