Seniors save significantly when switching drug plans during Medicare AEP

A third of seniors saved $300 or more by switching prescription drug plans during Medicare’s prior Annual Enrollment Period (AEP) according to a just-conducted survey by the American Association for Medicare Supplement Insurance (AAMSI). Some 14.5 percent of seniors saved more than $500 on this year’s drug costs by switching plans.

“Medicare’s Annual Enrollment Period (AEP) provides millions of seniors with the opportunity to review prescription drug plan coverage and get better coverage for the coming year,” states Jesse Slome, director of the organization. “Too few seniors take advantage of this chance to potentially save hundreds of dollars in 2024. Regrettably, as people age, they seem less willing to take the time to compare.”

Annual notices of 2024 drug plan changes will be mailed to all plan enrollees in September. According to AAMSI, 23 million individuals with stand-alone Medicare Part D drug coverage should receive this document.

Medicare’s Annual Enrollment Period begins each year on October 15 and concludes December 7^th. “Seniors have only 62 days to connect with a local Medicare agent or use one of the available online drug plan comparison websites,” Slome explains.

According to the Association’s survey, some 12% of seniors who compared drug plans last AEP switched and saved between $500 and $700 in drug costs in 2023.

“The typical senior currently has 60 different Medicare drug plans available, including 20 or more stand-alone Part D drug plans,” shares AAMSI’s Slome. “We expect most plans will make changes impacting costs for 2024.”

Tips to find the best 2024 Medicare drug plan

Slome cited what seniors should keep in mind as AEP 2023 approaches.

• Have you started taking any new medications in 2023?
• Will the ‘tier’ change in 2024 for those drugs you currently take?
• Did a generic version of any of your prescription drugs become available?
• Is your preferred local pharmacy still a preferred provider?
• Are lower-cost mail options available?
• Will plan deductibles, co-pays or co-insurance change for 2024?
• Could you benefit from a Medicare Advantage plan with included drug coverage?

The American Association for Medicare Supplement Insurance advocates for the importance of consumer awareness and supports insurance and financial professionals who market Medicare insurance solutions.