Medicare AEP vs OEP… what do these letters stand for? AEP stands for Medicare Annual Enrollment Period and OEP stands for Medicare Open Enrollment Period.
This should help eliminate the confusion and clarify what these enrollment periods are.
The Annual Enrollment Period (AEP) is the time of year when a Medicare beneficiary can make plan changes. The fall AEP runs from Tuesday, October 15 to Saturday, December 7.
During AEP the plan benefit changes for the next year are released, allowing Medicare beneficiaries to look around to ensure they are electing the plan that best fits their needs.
What Can I Do During AEP
Medicare Beneficiaries can elect to any of the following:
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- Drop a Medicare Advantage Plan and return to Original Medicare
- Change from one Medicare Advantage plan to a different one
- Change from Original Medicare to a Medicare Advantage plan
- Change from one Part D prescription drug plan to another
- Cancel your current Part D plan
- Pick up a Part D plan if you currently do not have one
Changes made during AEP go into effect on January 1st of the following year.
Every year in September you will receive an Annual Notice of Change (ANOC) letter. This letter explains all the changes that will be affecting your plan in the upcoming year. AEP gives you a chance to change if you are not happy with future adjustments to your plan.
What Can I Do During the Medicare OEP
The Medicare Annual Enrollment Period (OEP) starts on January 1st and runs through March 31st annually.
OEP and AEP Medicare are very different. In the Open Enrollment Period beneficiaries currently enrolled in a Medicare Advantage plan can:
- Cancel your stand-alone Part D prescription drug plan
- Drop your Medicare Advantage Plan and return to Original Medicare
- Enroll in a stand-alone Medicare Part D prescription drug plan
- Elect to change from one Medicare Advantage Plan to another.
Regarding enrolling in a stand-alone Part D plan...most Medicare Advantage include prescription coverage. Once you sign up with a Part D plan, the dis-enrollment from Medicare Advantage plan happens automatically and return you to original Medicare Parts A and B
You can enroll in a Medicare Supplement Plan (Medigap) once you are dis-enrolled from your Medicare Advantage Plan if you can medically qualify.
One Chance to make Changes
You only get one chance to make an election during the OEP. Once the election has been made you cannot change it again until the next AEP. If you decide to make a change, it will go into effect the following month. There are many reasons that a beneficiary may want to change from the plan they are enrolled in using this election period.
If you have problems with your plan after AEP and OEP, you may still be able to change plans. These other chances to make a change are referred to as Special Enrollment Periods (SEP).
There are many SEPs that you may qualify for, such as moving out of the coverage area of your plan, qualifying for a low-income subsidy, or receiving both Medicare and Medicaid.
Due to the confusing periods and choices you have with Medicare, it's recommended that you speak to your Medicare consultant or advisor about your options.
Kenneth Kiker, CHC spent 49 years in the insurance industry before retiring in 2011 after working in United Healthcare’s Tucson office for 6 years specializing in their Medicare division. He continues to work with Medicare beneficiaries helping them with their Medicare coverage decisions. Ken achieved his Certified Health Insurance (CHC) designation in 1990 after attending The CHC School of Marketing at Purdue University and passing a series of national program exams. Email: kennethk40@outlook.com.
