Generally, Medicare renews its coverage automatically at the end of each year as long as the beneficiary pays their premiums and is still eligible for the program. However, there are cases where your plan may not be automatically renewed. For example, if the provider drops its contract with Medicare, then your plan will be canceled.
For each aspect of Medicare, there are automatic renewal options. We’ll review each aspect below.
Original Medicare
If you have Medicare Part A and Part B, your coverage will be renewed automatically at the end of each year. Original Medicare is standardized across the country, so your coverage will not be dropped as long as you continue to pay your premiums. If there are changes to your Medicare policy, you will be informed through a written notice. It Is important to review your Medicare plan each year to examine the changes.
Medicare Advantage
Medicare Part C plans are automatically renewed at the end of each year unless the provider cancels the plan or their contract with Medicare. In this case, you will be given a written notice and may qualify for a Special Enrollment Period to enable you to enroll in another plan.
Medicare Part D
Like Part C plans, Part D plans automatically renew at the end of each year unless the provider no longer offers the plan or Medicare does not renew the contract.
Medigap
Medicare Supplement Plans automatically renew and are guaranteed renewable. Your Medigap plan will continue to renew unless you stop paying your premium. However, if you miss a premium payment, you will typically receive a grace period or reinstatement period.
The carrier cannot make changes to the plan or drop you if you have any changes regarding your health.
Non-renewal Notice
If your insurance provider does not renew their contract with Medicare, they will send a non-renewal notice in October to inform you. The notice will inform you if you will be enrolled in a similar plan or not. If you do not want this, you can choose a new plan during the Annual Open Enrollment Period or revert to Original Medicare by default. During the Annual Open Enrollment Period, you can switch to Original Medicare or choose another Medicare Advantage Plan.
If there are changes to your Part D or Medicare Advantage policy, you will receive an Annual Notice of Change describing the costs, service area, and coverage changes. After your insurance provider has notified you, ensure you review your plan to know if it is still affordable and suitable for your healthcare needs.
Though your Medicare plans will automatically renew except under certain conditions, ensure you review your plan at the end of each year. At Senior Savings USA, we provide unbiased advice to help with your Medicare decisions. For help, contact one of our professionals today.
