Every year Medicare members receive a thick packet from their part D plan. This package is called an Annual Notice of Change and it details the changes that will happen for the next benefit year. This is a packet that has a lot of important benefit information about prescription coverage. While it’s hard to understand, it must be read because the changes outlined in anyone’s prescription coverage is something that should be noted. The Annual Notice of Change is something that should be read at least twice for a full understanding.
An Annual Notice of Change has a lot of information about the prescription coverage plans. This information is always important for those that want to know what to look for in the next calendar year when it comes to their Medicare part D plan. In this packet, members will learn about:
There are often more pieces of information in these packets but those are the most basic pieces that are almost always included.
Yearly Thoughts for Prescription Coverage
It happens every year for millions of Medicare members. Every year, people begin to think of their prescription coverage and if they will change to a different Medicare part D provider. The best time to judge future satisfaction is when the Annual Notice of Change comes in the mail. It is the best way to compare current costs and to an estimate of next year’s costs.
As these notices of change come in, it’s very important to look at each piece. Although it seems like a lot, the information is very important.
Parts of an Annual Notice of Change
Copays and Coinsurance- Each ANOC (Annual Notice of Change) has a listing of the future pricing of copays and coinsurance payments. This is something that should be looked at because it can help people calculate their future out of pocket expenses for the next benefit year. Most Medicare members are on a fixed income and a dramatic increase can be devastating. Instead of being surprised, this piece of information will predict those costs.
Premiums and Deductibles- Almost every Medicare part d plan has a premium and some have deductibles. If there is going to be an increase in either the Annual Notice of Change will detail the increase. This is another thing that should be considered when thinking of upcoming out of pocket expenses.
Formulary Changes- A change is a formulary for a Medicare part D plan is a huge piece of information. The reason people enroll in a part D plan is to have their medications included in their insurance. If the prescription coverage changes and medications will no longer be covered it will be listed in the Annual Notice of Change. If there are any new restrictions or coverage rules, it will be listed. This is the information that most Medicare members are looking for.
Evidence of Coverage- The Evidence of Coverage Letter is a letter that states the member will be covered for the next year if no changes are made. It’s a letter that should be filed away.
An Annual Notice of Change is filled with a lot of important information. Most Medicare members are scared to read these packets because they don’t always understand why they should. These ANOC packets will help people decide before the Open Enrollment Period if they will be looking for another prescription coverage option. An Annual Notice of Change is a lot of information but it is needed.