Don't Toss It! Why Your Medicare Annual Notice of Change Matters

Senior Latin American woman at home reading a letter she got in the mail â€“ domestic life concepts — (Image credit: Getty Images)

Medicare open enrollment is almost here, and your Annual Notice of Change (ANOC) letter should be arriving soon. If you have a Medicare Part D or Medicare Advantage Plan, this document is crucial. The information inside will help you decide whether to keep your current coverage or find a new plan for the coming year. Don't make the mistake of keeping your plan on autopilot without reviewing it first.

Every fall, Medicare Advantage (MA) and Medicare Part D prescription drug plans are required to send an ANOC to their members. The notice provides a detailed summary of all the changes to the plan's benefits, costs, and coverage for the upcoming calendar year.

The arrival of the new notice is an opportunity to consider whether your current Part D drug plan or MA plan is still the best way to receive the care you need at a price you can afford. If not, it may be time to change plans.

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If you don't receive your ANOC letter by September 30th, you should contact your plan provider to request it. It will arrive by mail or email, depending on which option you chose; it may also be available on your plan's website.

What's in the Annual Notice of Change (ANOC) Letter?

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The letter compares your current plan's benefits with those of the upcoming year, highlighting any changes. Key information you'll find in the ANOC includes:

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Header Cell - Column 0	What it tells you:	Questions to ask yourself:
Cost Changes	This section will detail any changes to your monthly premium, annual deductible, copayment, and coinsurance for various services (e.g. doctor visits, hospital stays)	1) For Medicare Advantage plan participants, has your maximum out-of-pocket limit increased? 2) Has the monthly premium changed for your MA or Part D drug plan?
Part D prescription drug plan changes	The ANOC will inform you of any changes to the plan's formulary, which is a list of covered drugs. It's vital to check if your current medications are still covered and if they have moved to a different cost tier, which could change your out-of-pocket costs	2) Are there any coverage restrictions for your medications, such as quantity limits or prior authorizations? 2) How much will you pay for generic and brand-name drugs? 3) Is your pharmacy in the plan’s network? Is it a “preferred pharmacy” that offers the plan’s best pricing?
Provider network updates	It will notify you of any changes to the Medicare Advantage plan's network of doctors, hospitals, and pharmacies	1) Are your current doctors in the network? 2) Are hospitals or specialists you may need in the network? 3) Are you willing to switch to other providers if your preferred choices are not in the network anymore?
Coverage/Perk changes	The letter will outline new benefits that have been added to your MA plan or existing benefits that have been removed or changed, such as dental, vision, or hearing coverage	1) Will you need a referral from your primary care provider to see a specialist? 2) What new benefits have been added to your plan? 2) What existing benefits have been eliminated from your plan?

Why your Annual Notice Of Change (ANOC) matters

The ANOC letter is critical because it gives you the information you need to make an informed decision about your healthcare coverage during the Medicare Annual Enrollment Period (AEP), which runs from October 15 to December 7 every year.

Medicare Advantage and Medicare prescription drug plan insurance providers review their plan details each year and communicate changes to next year's coverage and costs in the letter.

An ANOC can help you in three important ways:

Avoid unpleasant surprises: Without reading the ANOC, you could be surprised on January 1 by higher costs, a medication no longer being covered, or that your doctor or preferred facility is no longer in your network
Provides actionable information: If you're not satisfied with any upcoming changes, the ANOC serves as a reminder to explore other plan options available in your area. You can then switch to a new Medicare Advantage or Part D plan during the AEP that better suits your needs. You can even switch back to original Medicare from an MA plan
Empower you: The letter gives you the power to assess whether your current plan still meets your health and financial needs. Even if you were happy with your plan this year, the changes outlined in the ANOC might make it less suitable for you next year

Where to find help

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Take time to review your plan. You don’t want to be caught off guard by higher costs or coverage changes after January 1. Whether you decide to stay with your current plan or to explore other Medicare coverage options, you want to make that choice based on the facts.

If you have any questions about the upcoming changes, contact your plan’s customer service department. They can help you understand the details of the changes to your coverage.

If you want to look at Medicare Advantage and Part D plans in your area, you can use the Medicare.gov/plan-compare tool to compare health and drug plans in your locale.

1-800-MEDICARE: You can call this number to ask questions about your Medicare options. Help is available 24 hours a day, except on federal holidays, when the offices are closed. TTY users should call 1-877-486-2048. Or, visit Medicare.gov.

State Health Insurance Assistance Programs (SHIPs): Contact your local SHIP for free, personalized counseling from trained volunteers. Federally funded SHIPs provide unbiased help (to people and their families) with Medicare issues and finding coverage.

Donna joined Kiplinger as a personal finance writer in 2023. She spent more than a decade as the contributing editor of J.K.Lasser's Your Income Tax Guide and edited state specific legal treatises at ALM Media. She has shared her expertise as a guest on Bloomberg, CNN, Fox, NPR, CNBC and many other media outlets around the nation. She is a graduate of Brooklyn Law School and the University at Buffalo.