True or False: October 15 – December 7 is the only time someone can sign up for Medicare.
False! There are multiple election periods, and they may be divided into two categories: fixed enrollment periods and event-dependent enrollments.
The first of the three fixed enrollment periods is the Annual Election Period (AEP), between October 15 and December 7. The Joe Namath commercials have popularized this election period in the past few years. During AEP people who already have Medicare may: 1. Change their Part D prescription drug plan, 2. Enroll in a Medicare Advantage plan for the upcoming year or 3. Leave their Advantage plan and return to Original Medicare.
The second and lesser-known Medicare Advantage Open Enrollment Period (OEP) is from January 1 to March 31. This enrollment period may not be advertised for sales purposes but is still available for Medicare enrollees to 1. Make a one-time change in their Advantage plan or 2. Disenroll from their Advantage program and return to Original Medicare.
Third, the General Enrollment Period (GEP) from January 1 to March 31 allows anyone who is eligible for Medicare but missed signing up for Medicare when they were first eligible or missed subsequent special enrollment periods sign up for Part A and Part B, which is known as Original Medicare. Late enrollment penalties may be assessed by Social Security.
As a side note, the OEP for Advantage plans shouldn’t be confused with the Medicare Supplement OEP which coincides with the first six months Part B eligibility!
The first of the two event-dependent enrollment period categories is the Initial Election Period (IEP). This is a seven-month election period that begins three months prior to the enrollee’s 65th birthday month, their birthday month, and the three months following their birthday month. Confusion often arises because the IEP can overlap with any number of other election periods.
The final and largest category of event-dependent enrollment periods falls under the heading of Special Enrollment Periods (SEP). These can include the loss of an employer-group health plan; loss or change in Medicaid status; moving to a new county, state or in or out of a nursing home. FEMA or governor-determined declarations of a SEP due to a weather-related incident like flooding, tornadoes or hurricanes are also included.
If Medicare enrollment options leave your head spinning, let the licenses insurance agents at On Point Insurance Agency help piece your options together.