Medicare Advantage plans are guaranteed renewable, but a particular plan’s benefits may change from year to year. This means coverage could be different, even if no changes are made during the open enrollment period and seniors continue paying their premiums.
Medicare Advantage, also called Medicare Part C, refers to plans offered by private insurers who have entered into contracts with the government. Although these plans have their own premium costs, they offer more comprehensive care benefits, including some degree of drug coverage.
Medicare Part D is a prescription drug coverage plan that Medicare beneficiaries can add onto Original Medicare. Since it’s administered by the federal government, there are standardized options and coverage, making it a less flexible option compared to Medicare Advantage plans.
For seniors reviewing insurance options, stability is a significant consideration. Health changes, such as developing a chronic illness, may result in more claims, which leads some insurers to terminate the buyer’s policy or make other undesirable changes. Renewable plans can help seniors avoid this problem. There are several types of renewable plans.
All Medicare supplement plans are guaranteed renewable, including Medicare Advantage. However, even though the plan will be automatically renewed, important changes may take place periodically. Each fall seniors receive an Annual Notice of Change (ANOC) detailing any changes in their plan’s coverage, cost or service area slated to take effect in the new year.