With open enrollment beginning on October 15, it’s important for consumers to have adequate information to make the right decision about their health coverage and whether or not they should stay on the same plan. It may seem easier to just stick with your current health insurance plan, but a new study shows that with a little time and a little research, changing health plans might save you money in the long run.
The study, published in the July issue of American Economic Journal, analyzed the benefits to consumers of switching Medicare Part D plans, which provide coverage for prescription medicines to seniors and people living with disabilities. By being an active consumer, including reviewing coverage on a yearly basis and switching plans if needed, beneficiaries can save an average of $400 to $600 per year. These savings represent 20 to 30 percent of average annual spending.
During open enrollment periods every year, Medicare Part D beneficiaries have the option to switch insurance plans. Under Part D, consumers have access to a variety of different plans and can select the plan that best suits their needs. But if they don’t switch plans, they are automatically reenrolled in their current plan.
Learn more about Medicare Part D here.
Allyson Funk Ally is a former senior director of public affairs at PhRMA focused on advocacy issues for the biopharmaceutical industry. Her expertise includes Medicare, Medicaid, 340B, health reform and more. Prior to PhRMA, her experience includes leading health communications for a large membership organization, supporting public affairs clients and working for the governor of Louisiana.