What You Should Know About Medicare Part D Plans in 2022

Medicare is a federal health insurance option generally used by those aged 65 or older, although other individuals may also qualify for this coverage as well. This insurance program has four parts that cover different types of services. While it is a federal program, you must enroll in Medicare to begin coverage. Much like employer-provided insurance policies, there are annual enrollment periods. The Medicare annual enrollment period 2022 will run from October 15 through December 17. Here's what you should know about Medicare Part D plans in 2022.

Understanding the Medicare Annual Enrollment Period 2022

Medicare annual enrollment happens every fall, and it’s during this time that you can change your type of coverage. There are different time periods for first-time enrollment and general enrollment as eligibility for each is different, and as a senior, you need to understand your options and requirements for obtaining Medicare coverage.

Age or Disability Enrollment

Most people in the U.S. must be 65 or older to enroll in Medicare. However, if you are younger, you may still be eligible for enrollment if you received Railroad Retirement Benefits or Social Security Disability benefits for at least 24 months. Those diagnosed with ALS aren’t required to wait before enrolling in Medicare, and some people with end-stage renal disease could qualify for early enrollment.

Automatic and Initial Enrollment

If you are already collecting Social Security, you are automatically enrolled in Medicare Parts A and B when you first become eligible. In this case, you do not need to wait for the annual enrollment period. This is also true for when you turn 65. Instead, you will receive a packet several months before your 65th birthday or when you have received 25 months of Railroad Retirement Board or Social Security Disability benefits.

Knowing Eligibility Rules by Medicare Parts

Medicare coverage is divided into four parts. These are termed Part A, Part B, Part C and Part D. While you can use the Medicare annual enrollment period 2022 to change your coverage, there are initial eligibility and enrollment processes in place. Anyone can enroll in Part A once they become eligible. There are enrollment limitations with Medicare Part B and premium Part A coverage.

Initial Enrollment Period

There is a seven-month period of enrollment when you first become eligible for Medicare. This begins three months before your 65th birthday and closes three months after your 65th birthday. With disability-based eligibility, there is a three-month enrollment period both before and after the 25th month of disability payments.

General Enrollment Period

The annual enrollment for Medicare Advantage runs from January 1 through March 3. Anyone already enrolled in Medicare Advantage can change their plan during this time but without the options provided during the fall oannual enrollment. Coverage doesn’t begin and changes won’t take effect until July 1, and only one change can be made during this period.

This is also a period of enrollment for those who either didn’t have access to a special enrollment period for Medicare Part B plans or didn’t sign up when they became eligible. Those who didn’t enroll in Part A during first eligibility and who need to pay a premium for Part A can also use this time to enroll.

5-Star Special Enrollment

Medicare plans receive rankings based on data taken from health care providers, plans and member satisfaction surveys. A plan is rated on a scale of one to five stars. A five-star rating is reserved for plans considered excellent. These plans aren’t available in every location, but if one is, there is a special enrollment period to change from your current plan to one with a five-star rating. The enrollment period runs from December 6 through November 30, but you can only make a change once during this time.

Making Decisions During Medicare Annual Enrollment Period 2022

Annual enrollment is often called annual enrollment, and even if you are already enrolled in a plan, you can make changes to your coverage during this time. You can alter your plan type or add a plan with a prescription drug benefit. These are some of the things that can do during Medicare annual enrollment:

• Drop your Medicare coverage altogether
• Change from basic Medicare to a Medicare Advantage Plan
• Change between one Medicare Advantage Plan to another Advantage Plan
• Join a Medicare Drug plan
• Switch between Medicare Drug plans
• Change from a Medicare Drug plan to one without prescription drug benefits

Even though the period runs from October 15 through December 7, your coverage won’t take effect until January 1.

Avoiding Penalties for Medicare Late Enrollment

Even with plenty of opportunities during the Medicare annual Enrollment Period 2022, you might still miss your initial and subsequent enrollment periods. By doing this, you may be subject to a penalty for late enrollment.

Medicare Part A

If you fail to sign up for Part A when you are first eligible, you may face a late-enrollment penalty. The penalty is added to your monthly premium and is 10% of your total premium regardless of how long the delay was. This penalty stays in place for twice the number of years you should have had Medicare Part A but didn’t.

Medicare Part B

The late-enrollment penalty for Medicare Part B is similar to that of Part A. The penalty is 10% of the premium and can be assessed for as long as you maintain a Part B plan. The penalty can also increase 10% each year you miss Medicare annual enrollment.

Medicare Part D

There are ways to avoid a late-enrollment penalty for a Part D plan, but failing to enroll in an Advantage Plan or Part D when eligible could lead to a penalty. The cost can change from year to year, as it is based on a formula related to the national base beneficiary premium.

Taking Advantage of the Medicare Annual Enrollment Period 2022

Take advantage of the Medicare annual enrollment period 2022 to change your plan or enroll in the services that will take care of your health. Use the resources at Total Senior Guide to help make your choice.

Medicare has different parts, each of which covers a different aspect of health care. Part D covers prescription medications. While some parts of Medicare are available through the government, Part D plans can only be purchased through private insurers such as Wellcare. The Centers for Medicare and Medicaid Services implement changes frequently, so here are key things you should know about Medicare Part D plans 2022.

What Changes Should You Look for in Medicare Part D Plans 2022?

For 2022, CMS has made changes to the costs associated with Medicare Part D. For example, the basic premium has increased 4.9% from 2021 to 2022 and now costs $33.37 per month. The yearly deductible is also increasing to $480. In other words, you have to pay full price for your prescription medications until you pay $480 worth, at which point your Part D coverage kicks in and you only have to pay 25% of the cost for each medication.

While some of the changes made in 2022 to Part D are going to cost you more money, there are also adjustments intended to save you money. For example, Medicare is offering enhanced plans that cap prices for a month's worth of insulin at $35, which is very beneficial for diabetics who rely on this medication. This change was implemented on a temporary basis, but you can continue to take advantage of it until 2025. It ends at the beginning of 2026 unless another change takes place to extend it.

A formulary is the list of medications covered by a prescription drug plan. Medicare Part D providers arrange their formularies into tiers to determine copayments. Generally speaking, Tier 1 is for generic drugs and has the lowest copayment, while Tiers 2 and 3 include brand-name drugs and have higher copayments. The specialty tier doesn't have a number; it is for the most expensive prescription medications and has the highest copayment. However, in 2022, plan providers can offer to list certain medications on a preferred tier in exchange for discounts from the manufacturers. This is another change to Medicare Part D plans 2022 that could end up saving you money.

Find Medicare Plan That's Right For You

Because Medicare Part D plans 2022 are offered through private companies rather than the government, choosing a plan can be a challenge. Total Senior Guide can help you understand your options so you are better prepared to choose the plan that's right for you.

Take advantage of the Medicare annual enrollment period 2022 to change your plan or enroll in the services that will take care of your health. Use the resources at Total Senior Guide to help make your choice.

Compare Medicare Advantage Plans 2022

Sources:

• https://www.brightplazapharmacy.com/what-you-need-to-know-about-medicare-part-d-for-2022-october-2021/
• https://www.cms.gov/newsroom/news-alert/cms-releases-2022-projected-medicare-part-d-average-premium
• https://www.nerdwallet.com/article/insurance/medicare/what-is-medicare-part-d
• https://www.medicare.gov/Pubs/pdf/10050-medicare-and-you.pdf
• https://www.medicare.gov/drug-coverage-part-d/what-medicare-part-d-drug-plans-cover
• https://www.goodrx.com/insurance/medicare/changes-coming-to-medicare-prescription-drug-plans-in-2022
• https://www.nerdwallet.com/article/insurance/medicare/wellcare-part-d
• https://www.investopedia.com/wellcare-medicare-review-5094130
• https://www.toptenreviews.com/best-medicare-part-d-plans