Medicare open enrollment starts soon. Here’s how to save money without sacrificing coverage

When it comes to your health care coverage, it pays to research your options and comparison shop because you might save money while doing a comprehensive review that ensures coverage for your health care.

For those on Medicare — the largest public health program in the U.S. that covers 67 million people ages 65 and older as well as younger adults with long-term disabilities — open enrollment is the time for just that. It runs from Tuesday to Dec. 7, with new coverage starting in 2025.

Yet nearly 7 in 10 of those on Medicare did not research their options in 2021, according to KFF, formerly known as the Kaiser Family Foundation. Medicare plans and programs change, sometimes dramatically. Your health needs might have changed, too. (Researching options during open enrollment is particularly critical for Minnesotans in certain Medicare Advantage health plans facing network disruptions and higher out-of-pocket costs next year.)

Among the critical choices to investigate is whether there is a Prescription Drug Plan (Part D) option that better fits your needs. The average Medicare beneficiary has 21 Part D plans to choose from in 2024, KFF calculated. These plans can change significantly in terms of costs and drugs covered.

Medicare Advantage plans are popular. These are private health insurance plans the federal government pays to provide Medicare-covered benefits as an alternative to traditional Medicare. Medicare Advantage plans offer more benefits, such as eye and dental care or gym memberships. If you’re on Medicare Advantage, the typical participant can choose from 43 plans from eight insurance companies this year. Again, these plans differ greatly in their details. Open enrollment is when you can change from traditional Medicare to Medicare Advantage if you want.

You can also switch from Medicare Advantage to traditional Medicare. The move usually doesn’t make financial sense since it’s unlikely you’ll receive a Medigap policy at the same attractive terms as when you first become eligible for Medicare.

Medicare offers several online tools, including the comparison-shopping Medicare Plan Finder. The Minnesota State Health Insurance Assistance Program/Senior LinkAge Line offers free assistance reviewing your options. I highly recommend the newly revised and updated book by Philip Moeller, “Get What’s Yours for Medicare: Maximize Your Coverage, Minimize Your Costs.” Moeller is deeply knowledgeable about the nuances of the complex federal health insurance program and his audience is you, the Medicare consumer.

Chris Farrell is senior economics contributor, “Marketplace”; and a commentator for Minnesota Public Radio.