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Seniors discussing Medicare options during the Annual Enrollment Period

Everything You Need to Know About the Medicare Annual Enrollment Period (AEP) 

September 26, 20253 min read

The Medicare Annual Enrollment Period (AEP) happens every year from October 15 to December 7. During this time, anyone with Medicare can review, switch, or drop their Medicare Advantage and Part D prescription drug plans. Even if you’re happy with your current coverage, AEP is your chance to make sure your plan still meets your health and financial needs for the upcoming year. 

 

Why AEP Matters 

Healthcare needs and plan details can change every year: 

  • Your prescriptions may have changed 

  • Your doctor may no longer be in your plan’s network 

  • Plan costs and coverage levels can change 

Reviewing your plan during AEP helps ensure you have the right coverage at the best value for your health needs. 

 

What You Can Do During AEP 

During the Annual Enrollment Period, you can: 

  • Switch from Original Medicare to a Medicare Advantage plan (Part C) 

  • Switch back from Medicare Advantage to Original Medicare 

  • Change from one Medicare Advantage plan to another 

  • Join, switch, or drop a Part D prescription drug plan 

Any changes you make will take effect January 1, 2026

 

Big Changes Coming in 2025 and 2026 

Here’s what’s new starting January 1, 2025, and beyond: 

1. $2,000 Out-of-Pocket Cap for Part D 

For the first time ever, your out-of-pocket prescription drug costs will be capped at $2,000 in 2025. In 2026, this cap will rise slightly to $2,100

2. Medicare Prescription Payment Plan (M3P Plan) 

This new voluntary program lets you spread out your prescription drug costs throughout the year rather than paying large amounts all at once. This will help people better manage their monthly budgets. 

3. No More 5% Catastrophic Coinsurance 

The previous 5% coinsurance for very high drug costs will be eliminated, meaning once you hit the cap, you won’t have to pay additional costs for covered Part D drugs. 

4. Expanded Extra Help Program 

Starting in 2025, more people will qualify for Extra Help, which lowers Part D premiums and copayments for those with limited income and resources. 

5. Free Adult Vaccines 

Adult vaccines such as shingles and flu shots will now be covered at no out-of-pocket cost, removing a key barrier to preventive care. 

6. $35 Insulin Cap 

Insulin costs will remain capped at $35 per month, making this life-saving medication more affordable for millions of Medicare beneficiaries. 

 

How to Prepare for AEP 

Here’s a quick checklist to make your AEP process smoother: 

  1. Review your current plan – Look at what worked and what didn’t this year. 

  1. List your medications and providers – Make sure they’re covered in your plan. 

  1. Set a budget – Know what you can comfortably spend on premiums and prescriptions. 

  1. Watch for plan updates – Plans send an Annual Notice of Change (ANOC) every September. 

  1. Seek guidance if needed – Talk to a licensed Medicare advisor for personalized support. 

 

Key Dates to Remember 

  • October 15 – December 7, 2025: AEP is open. 

  • January 1, 2026: New plans and changes take effect. 

 

Resources and References 

Here are the official sources used to verify all information in this blog: 

  1. AEP Dates and RulesMedicare.gov 
    https://www.medicare.gov/basics/get-started-with-medicare/get-more-coverage/joining-a-plan 

  1. $2,000 Out-of-Pocket Cap (2025) – KFF: Medicare Part D in 2025: A First Look 
    https://www.kff.org/medicare/medicare-part-d-in-2025-a-first-look-at-prescription-drug-plan-availability-premiums-and-cost-sharing/ 

  1. Cap Increase to $2,100 in 2026, Extra Help, Vaccines, and Insulin – PAN Foundation 
    https://www.panfoundation.org/everything-you-need-to-know-about-medicare-reforms/ 

  1. Medicare Prescription Payment PlanMedicare.gov 
    https://www.medicare.gov/health-drug-plans/part-d/basics/costs 

  1. Insulin Savings Program – CMS 
    https://www.cms.gov/newsroom/fact-sheets/insulin-savings-program 

 

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FAQS

Who is eligible for Medicare insurance?

Medicare insurance is generally available for individuals aged 65 and older, as well as certain younger individuals with qualifying disabilities. Eligibility criteria may also extend to individuals with specific medical conditions, ensuring a broad coverage for those in need of healthcare support.

Can I have other health insurance while on Medicare?

Yes, it is possible to have other health insurance while on Medicare. Many individuals choose to supplement their Medicare coverage with additional plans, such as Medicare Supplement Insurance (Medigap) or Medicare Advantage plans, to enhance their benefits and address specific healthcare needs.

What is the cost of Medicare insurance?

The cost of Medicare insurance varies depending on factors such as the specific plans chosen, income, and individual circumstances. While some parts of Medicare may have premiums, others, like Part A, may be premium-free for eligible individuals, and additional coverage options such as Medicare Advantage or Medigap plans involve separate costs.

What types of coverage are typically included in individual and family insurance plans?

Individual and family insurance plans commonly include coverage for medical services, hospital stays, prescription drugs, preventive care, and sometimes dental and vision care. These plans are designed to provide comprehensive protection for the health and well-being of individuals and their families.

Can I choose my own healthcare providers with individual and family insurance?

Yes, many individual and family insurance plans allow you the flexibility to choose your healthcare providers. However, it's essential to review the plan's network to ensure your preferred doctors and facilities are included, as staying within the network often results in lower out-of-pocket costs.

What factors should I consider when determining the amount of life insurance coverage I need?

When deciding on the coverage amount, consider factors such as your financial obligations, including mortgage and education expenses, current debts, and the financial needs of your dependents. It's crucial to assess your family's future needs to ensure they are adequately protected in the event of your passing.

Can I purchase life insurance for someone else?

Typically, you can purchase life insurance for someone else if you have an insurable interest, such as a family member or business partner, and their consent. However, insurance regulations may vary, so it's essential to check with the insurance provider to understand the specific requirements and options available.