Medicare Advantage

Question 1

T or F

Medicare Advantage is totally private insurance, and therefore is not subject to AGI based IRMAA surcharges.

Answer 1

True. Because Medicare Advantage is private, it is not subject to IRMAA.

However, Part B and Part D premiums for Medicare Advantage participants are subject to IRMAA.

Question 2

What is the Medicare Advantage Disenrollment Period?

Answer 2

When - January 1 to February 14th each year

What - Allows those with Medicare Advantage plans to drop them and enroll in Traditional Medicare with Part B (plus A, which they should already have).

It also provides a SEP that allow one to enroll in a Part D plan. One can enroll in Part D even if drug coverage was not offered by the Medicare Advantage policy.

Effective Dates

Traditional Medicare - Traditional Medicare becomes effective on the first day of the month after the month that you request disenrollment from Medicare Advantage. So if you request disenrollment any time in January, Traditional Medicare would become effective as of February 1. If you disenrolled on February 10, then Traditional Medicare would become effective on March 1.

Part D - It takes longer for Part D to become effective. For instance if you requested disenrollment from Medicare Advantage on January 31st, your Traditional Medicare would become effective on February 1, but Part D would not become effective until March 1. To avoid a gap in drug coverage, disenrollment should be requested as early as possible in the allowable period.