What is the Annual Notice of Change?
An Annual Notice of Change (ANOC) is an official notice sent by Medicare AdvantageMedicare Advantage (MA), also known as Medicare Part C, are health plans from private insurance companies that are available to people eligible for Original Medicare (Medicare Part A and Medicare Part B). and Medicare Part DMedicare Part D plans are an option Medicare beneficiaries can use to get prescription drug coverage. Part D plans provide cost-sharing on covered medications in four different phases: deductible, initial coverage, coverage gap, and catastrophic. Each... plans to their members in late September. The notice provides a summary of the changes to coverages and costs in the upcoming year.1Medicare.gov, “Plan Annual Notice of Change“, Accessed September 14, 2021
Key Takeaways
- An Annual Notice of Change notifies a Medicare Advantage or Part D plan member of changes to their coverages and costs.
- Plan members receive an ANOC every September before the new year’s changes happen.
- The new changes go into effect when the plan renews at the start of the year.
Do Medicare Plans Change Each Year?
Changes to a Medicare Advantage or Medicare Part D plan will be noted in the ANOC. The ANOC will tell beneficiaries what areas and services are still covered by their plan, as well as the costs1Medicare.gov, “Plan Annual Notice of Change“, Accessed September 14, 2021. The costs are deductiblesA deductible is an amount a beneficiary must pay for their health care expenses before the health insurance policy begins to pay its share., copaymentsA copayment, also known as a copay, is a set dollar amount you are required to pay for a medical service., and the monthly premiumsA premium is an amount that an insurance policyholder must pay for coverage. Premiums are typically paid on a monthly basis. In the federal Medicare program, there are four different types of premiums. 2Medicare.gov, “Medicare costs at a glance“, Accessed September 14, 2021.
Do Medicare Plans Renew Automatically Each Year?
Medicare Advantage and Medicare Part D plans automatically renew until their beneficiaryA person who has health care insurance through the Medicare or Medicaid programs. cancel or switch plans1Medicare.gov, “Plan Annual Notice of Change“, Accessed September 14, 2021. A beneficiary may encounter a situation where their Medicare plan cannot be renewed, such as moving to a new service area or if their plan is no longer available. If this happens they can request a Special Enrollment PeriodSpecial Enrollment Periods (SEPs) allow beneficiaries to change their Medicare Advantage and Part D plans due to a special circumstance. Common reasons for a SEP include moving, losing employer coverage, and Medicaid eligibility, to name... (SEP)3Medicare.gov, “Special circumstances“, Accessed September 14, 2021.
Citations
- 1Medicare.gov, “Plan Annual Notice of Change“, Accessed September 14, 2021
- 2Medicare.gov, “Medicare costs at a glance“, Accessed September 14, 2021
- 3Medicare.gov, “Special circumstances“, Accessed September 14, 2021