The end of each calendar year brings with it lots of holidays, year-end tax planning, and many other things. Did you know the end of the year is also a great time to evaluate your current Medicare coverage? Every year presents a new opportunity to switch from your current Medicare Part D (prescription drug) plan to a new one if it provides you with better, more cost-effective coverage. This window of opportunity exists between October 15th and December 7th each year. Unlike some other parts of Medicare, such as your supplemental plan, which are harder to change after your initial enrollment, you can and potentially should, switch your Part D coverage each year. At the very least, it is important to review your coverage on an annual basis even if you choose not to make a change. 

You may feel like you have great coverage this year, and there would be no reason to change Part D plans. So why do we suggest reviewing your plan each year? Medicare Part D plans can change a great deal from year to year, and the 2026 plan year is no exception. Plans can choose which pharmacies they work with. For example, your pharmacy of choice may be a preferred pharmacy in 2025 on your current plan. However, that plan or pharmacy can decide not to work with one another in 2026, which causes the pharmacy to be out of network. This can cost you hundreds, if not thousands, in out-of-pocket prescription costs, or the hassle of changing pharmacies.

You may have had changes to your own list of prescriptions. Your doctor may have prescribed a new drug during the year or taken one off your list. Adding or subtracting prescription drugs from your plan can have a large impact on cost and which plan you choose. Even changing the dosage can impact cost from plan to plan. 

Even if your drug list has not changed, certain drugs may change tiers in the Medicare system, as well. This change can be identified through the analysis process, and a different plan could reduce your cost. Or, for example, it may be beneficial to ask your doctor if your brand name drugs could be switched to the generic version instead.

This analysis can be done annually during the Open Enrollment window (October 15th to December 7th) through www.medicare.gov. If you are reading this and don’t know where to begin, let us know. This analysis is something our Financial Planning Team specializes in. To give you the best recommendation, we will ask for your prescription drug list and dosages, as well as your preferred pharmacy. We can then compare cost to stay on your current plan versus switching to a new plan. In our experience, sometimes clients want to stay on their current plan because the cost difference is low. However, in other cases, we have seen clients save up to $10,000 for the year by switching their Part D plan. We would love the opportunity to help evaluate your current plan. Give us a call today! An Advisor or member of our Financial Planning Team would be delighted to speak with you.