Key Takeaways

• Your Annual Notice of Change (ANOC) might reveal significant changes to your Medicare plan—even if you haven’t requested any.

• Ignoring or overlooking this notice could result in higher costs, reduced benefits, or changes in your provider network for the upcoming year.

That Letter from Medicare? Don’t Toss It.

Each fall, Medicare plans send out a document called the Annual Notice of Change (ANOC). It usually arrives by September 30 and outlines any changes to your plan for the upcoming year starting January 1. While this may look like just another government letter, it could be one of the most important pieces of mail you receive all year.

If you have a Medicare Advantage or Medicare Part D plan, your provider is required to notify you of changes to your benefits, costs, and drug coverage annually. But here’s the challenge: many beneficiaries don’t read this letter, assume nothing’s changed, and find themselves caught off guard in January.

What the Annual Notice of Change Includes

Your ANOC gives you a side-by-side comparison of your current plan’s benefits and what those benefits will look like in the next calendar year. Here are the most common sections you’ll find:

Changes to Monthly Premiums

• While Original Medicare Part A and Part B premiums are set by the federal government, premiums for Medicare Advantage and Part D plans can change yearly.

• Your ANOC will indicate whether your monthly premium is increasing, decreasing, or staying the same.

Updates to Deductibles and Copayments

• Copays for visits to doctors or specialists

• Deductibles for drug plans or health services

• Maximum out-of-pocket costs

Drug Formulary Adjustments

• Your prescription drug list (formulary) may add or remove medications

• Some drugs may move to a different tier, which affects your copay

• Restrictions like prior authorizations or quantity limits may be added

Network Changes

• Your plan’s provider or pharmacy network might be updated

• Doctors or hospitals you currently use may no longer be in-network

Coverage Adjustments for Services

• Some plans may add or remove benefits like dental, vision, hearing, or fitness programs

• Telehealth coverage terms may shift

Why You Should Review It Immediately

Reading your ANOC doesn’t just protect your benefits—it protects your budget. Even minor changes can lead to significant out-of-pocket costs. For example, if your primary care provider is no longer in-network, you could be billed at out-of-network rates.

Or, if your prescription drug is removed from the formulary, you may end up paying full retail price unless you switch plans or medications.

You Have Time—But Not Much

The Medicare Open Enrollment Period runs from October 15 to December 7 each year. This is your opportunity to make changes to your coverage, such as:

• Switching from one Medicare Advantage plan to another

• Moving from a Medicare Advantage plan back to Original Medicare

• Changing your Medicare Part D prescription drug plan

If you don’t act during this window, you’ll likely be locked into your current plan’s new terms for all of 2025.

Common Changes That Catch People Off Guard

Even though you didn’t initiate any change, your plan may implement the following:

1. Increased Prescription Drug Costs

Plans adjust drug formularies each year. You may see your medications:

• Reclassified into a higher tier (meaning higher costs)

• Dropped altogether

• Now requiring step therapy or prior authorization

2. New Provider Restrictions

Medicare Advantage plans often change their provider networks. Your favorite doctor or hospital could now be considered out-of-network.

3. Higher Out-of-Pocket Maximums

Plans can raise the ceiling on what you might pay in a worst-case health year. This includes:

• Higher cost-sharing for hospital stays

• Increased specialist visit copays

• New or higher deductibles

4. Reduction in Supplemental Benefits

Additional perks like dental cleanings, hearing exams, or fitness memberships might be scaled back or dropped altogether.

5. Part B Premium Changes (If Covered in Your Plan)

Some Advantage plans offer a reduction in your Part B premium. This benefit could be reduced or removed altogether for 2025.

How to Read Your ANOC Effectively

Don’t just skim the letter. Here’s a smart way to go through it:

• Start with the Summary of Changes. This is often the first few pages.

• Highlight what matters to you: premiums, drug costs, specialist copays.

• Use your 2024 health history as a guide to predict what you’ll likely use in 2025.

• Check the formulary if you take medications regularly.

• Verify provider network if you rely on specific doctors or clinics.

Questions to Ask Yourself While Reviewing

• Has the cost of my medications gone up?

• Are my current doctors and specialists still in-network?

• Did the plan add any new requirements for my prescriptions?

• Are there better plans in my area offering what I need?

What If You Miss the Letter?

If it’s past September 30 and you haven’t received your ANOC:

• Check your mail pile or recycling bin (yes, really).

• Look for an electronic version if you opted into online communications.

• Call your plan directly and request a replacement.

Delaying could mean missing the Open Enrollment window altogether, especially if you want to compare your options thoroughly.

What You Can Change During Open Enrollment

During Medicare Open Enrollment, you can:

• Switch from Medicare Advantage to Original Medicare

• Switch from one Medicare Advantage plan to another

• Join, drop, or change your Medicare drug plan (Part D)

The new plan takes effect on January 1, 2025, so any changes you make now will define your healthcare for the year.

What You Cannot Change During This Period

There are some limitations:

• You can’t sign up for Medicare for the first time

• You can’t switch from Original Medicare to Medicare Advantage outside of this window unless you qualify for a Special Enrollment Period

Consider Help from a Licensed Agent

Medicare rules, coverage levels, and drug formularies can be complex and change year to year. That’s why many beneficiaries find it helpful to speak with a licensed agent. They can compare plans side by side, assess your needs, and guide you through enrollment changes.

Agents have access to current plan details and can help you evaluate what coverage makes the most sense based on your health, budget, and doctor preferences.

Stay Proactive to Avoid Costly Surprises

Ignoring your Annual Notice of Change could cost you money, access, and peace of mind. Take the time to read your ANOC carefully and take action during the Open Enrollment Period. You don’t need to do it alone.

If you have any doubts or feel overwhelmed, get in touch with a licensed agent listed on this website who can help you review your plan options and make confident decisions for 2025.