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Medicare Course/Module 12 of 12·11 min

Annual review playbook — your October checklist

Why most retirees lose money by not re-shopping every year — and the exact 30-minute process to fix it

In this module

Plan formularies change. Premiums change. Networks change. The single highest-return habit in Medicare is re-shopping during AEP every October. Here's the exact process — under 30 minutes if you're prepared.

Why annual review matters

Part D plans publish new formularies and premiums every year. The plan that ranked #1 for your drugs last year may rank #15 this year. Drug tier changes, formulary removals, network exclusions, and premium increases compound annually.

MA plans similarly change networks, drug formularies, and benefits every year. A plan that was great in 2025 may have lost your specialist or moved your medication to a higher tier in 2026.

Original Medicare itself doesn't change much — Part B premium adjusts annually, deductibles tweak. But Medigap premiums increase based on the rate method (attained-age plans go up faster).

Net effect: people who don't re-shop annually pay an average of $400-1,000/year more than they should. Compounded over 20-year retirements, that's $10,000-25,000 in waste.

The October calendar

September: Annual Notice of Change (ANOC) arrives from your current plan. This document lists every change for next year — new premium, formulary changes, network changes. READ IT.

October 1: Plan Finder updates with new-year plan data. You can see all 30+ Part D plans + all MA plans for your zip with new pricing.

October 15: AEP opens. You can submit enrollment changes for January 1 effective.

December 7: AEP closes. Last day to make AEP-eligible changes.

January 1: New plan is in effect.

January 1 – March 31: MA-OEP (only if in MA). Buffer period to switch MA plans if needed.

The 30-minute review process

Step 1 (5 min): Pull your current medication list with exact dosages and frequencies. Update for any new drugs from the past year.

Step 2 (5 min): Read your ANOC. Note: did your premium change? Were any drugs moved to higher tiers? Did the deductible change?

Step 3 (10 min): Run your drug list through Compare My Medicare or Medicare's Plan Finder. Get the ranked list of plans for your zip.

Step 4 (5 min): Compare top 3 alternatives against current plan. Verify: drugs covered? Premium? Deductible? Total expected cost?

Step 5 (5 min): If a different plan saves $100+/year for the same coverage quality, enroll in the new plan. Old plan auto-disenrolls when new one starts.

MA plan annual review

If you're on an MA plan, your review checklist adds:

Provider directory verification: are your doctors still in-network for next year? Networks change — losing a specialist mid-year is a big deal.

Drug formulary check: same as Part D review.

Prior authorization changes: did the plan add PA requirements for services you use?

Star rating check: plans rated below 3 stars for 3+ years can be terminated. If your plan dropped, your enrollment may be at risk.

Benefits comparison: did dental, vision, hearing benefits change? Are extras still useful?

Medigap annual review

Medigap reviews are simpler. Your Medigap doesn't change benefits (federally standardized) but premiums increase annually with attained-age plans.

Each year: check if a different carrier is cheaper for Plan G in your state. If yes, you can apply with new carrier — but you'll go through medical underwriting (outside the 6-month OEP). Only switch if you're healthy enough to qualify.

Some states (Birthday Rule states like CA, OR, MO) let you switch Medigap carriers annually around your birthday with guaranteed-issue. Check your state.

After AEP — confirmations

After enrolling in a new plan: confirm the enrollment within 2 weeks. New plan should send a confirmation letter or call.

If you don't get a confirmation: call the new plan directly. Don't assume enrollment processed.

January 1: new plan ID card should arrive. If it doesn't by mid-January, escalate.

First fill in January: confirm the pharmacy uses the new plan, not the old one. Sometimes pharmacies have stale info — bring the new card.

Key takeaways
  • Most retirees lose $400-1,000/year by not re-shopping during AEP.
  • Read your ANOC in September. Plans tell you everything that's changing.
  • 30-minute annual review: drug list, ANOC, plan finder, top 3 comparison, switch if better.
  • MA review adds: provider network, formulary, prior auth, star rating.
  • Medigap review: check cheapest carrier, but underwriting may apply outside OEP.
Action steps — do this now
  1. Calendar Sept 25 (read ANOC), Oct 15 (re-shop), Dec 7 (AEP close).
  2. Set up annual reminder to run Compare My Medicare in October.
  3. Save ANOC docs for tax records and audit trail.
Cheat sheet — Annual review checklist
  • · Sept 25: ANOC review — note premium + formulary changes
  • · Oct 1: Plan Finder updates with new-year data
  • · Oct 15: AEP opens
  • · Oct 15 – Nov 15: Run drug list comparison + decide
  • · Nov 15 – Dec 7: Switch if better option exists
  • · Dec 7: AEP closes
  • · Jan 1: New plan effective, verify ID card + first pharmacy fill

Print this cheat sheet for quick reference. Pairs with the full lesson above.

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