4 reasons to review your Medicare options every year

If you’re satisfied with your Medicare coverage, it may be tempting to just sign up for the same health care package during the annual open enrollment window. But what worked for you in the past won’t necessarily work for you in the future. And taking a “set it and forget it” approach may result in medical coverage that doesn’t adequately serve your evolving health and financial needs.

Overall, your life can change a lot in the year — and your Medicare selections should reflect that. Your Ameriprise financial advisor is here to help evaluate your financial options during open enrollment.

Here are four reasons why all retirees should actively evaluate their Medicare selections on a yearly basis: 

1. Medicare benefits are always evolving

Medicare benefits are continuously changing due to the industry landscape, regulatory environment and other external pressures. Deductibles, prescriptions and premiums are susceptible to price increases and inflation. Likewise, doctor and prescription availability are not fixed. And more specifically, the Medicare program is subject to regulation by the federal government, which means that new legislation can affect prices and care offered.

Bottom line: The terms of Medicare are always evolving, which is one critical reason retirees should regularly appraise their plan each year.

2. Lifestyle changes may warrant a change in coverage

Any lifestyle changes — large or small — might affect the efficacy of your coverage.

Perhaps you’re ready to consider participation in Medicare’s vision and dental plans — or take advantage of the program’s fitness benefit. Maybe you’ve moved to a new state or plan to travel internationally, where Original Medicare doesn’t provide coverage.

Or maybe you hit a significant birthday: Once you reach a certain age¹, you are required to take required minimum distributions (RMDs), which can impact how much you pay for Medicare.

Bottom line: Your lifestyle can change a lot in a year and your health care selections should reflect your current situation.

3. Health changes may mean more — or less — coverage

Health changes like a new condition or diagnosis may warrant a change in prescriptions or a trip to a specialist. A recent injury or fall may mean more rounds of doctor’s visits and tests. You may need to schedule a surgery in the coming year for a replacement knee or shoulder, which could warrant a new look at your coverage.

Bottom line: Whatever your anticipated health needs are for the year, you’ll want to ensure your treatment is covered in your plan.

4. Health care is a considerable expense in retirement

The Medicare plan you select will have a big impact on the total annual amount you spend on health care, affecting everything from monthly co-pays to what you’ll pay out of pocket for an unforeseen hospital stay.

If your financial situation has changed, you may even want to reconsider upfront costs vs. caps in costs. Additionally, changes to your income (from retirement account withdrawals, rental income, gains from the sale of a home, capital gains and the like) can affect your cash outlay.

Bottom line: Your Medicare coverage should not only align with your health needs, but your financial goals too.

Let’s work through your Medicare options — together

Medicare is a valuable program for many retirees, but it can be complex, which is why it’s worth reviewing annually. Your Ameriprise financial advisor can help you evaluate your open enrollment choices and account for projected health care costs in your financial strategy for the coming year.