What Is a Medicare Annual Notice of Change (ANOC), and What Should I Do With It?
Key takeaways:
An annual notice of change (ANOC) letter informs Medicare Advantage and Part D policyholders about any changes to their benefits for the coming year. Enrollees should read this letter closely, as it often contains information about several updates.
By law, private Medicare plans must send an ANOC to enrollees by September 30, ahead of the annual Medicare open enrollment period, which runs from October 15 through December 7 each year.
Plans often change their costs and benefits annually, so you can end up with different coverage, even if you keep the same policy.
If you received an annual notice of change (ANOC) letter in the past, you might have been tempted to toss out the nondescript document. But an ANOC, which is typically sent weeks before Medicare open enrollment begins on October 15, contains valuable information for people covered by Medicare Advantage and Medicare Part D prescription medication plans.
For that reason, it’s important to study your ANOC, which may contain a dozen or more pages of information about what your plan will cover in the next year and any changes going into effect as of January 1. Depending on what, if anything, is changing, your plan may no longer align with your healthcare and prescription medication needs in the coming year.
What is a Medicare ANOC letter?
Typically 15 to 30 pages, an ANOC details any changes to your health insurance and/or prescription medication coverage that will go into effect the coming January. If you have a Medicare Advantage plan, the document will come from the carrier of that plan. If the Medicare Advantage plan covers prescription medications, any of those coverage changes will be detailed in that letter.
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If you have a standalone Part D prescription medication plan, you’ll get an ANOC letter from the insurance company that provides that plan.
The federal government requires the ANOC letter to have a standard format that includes:
A table of contents
Side-by-side comparisons of benefits for the current and coming year
Side-by-side comparisons of costs for the current and coming year
Information about formulary changes if your plan covers prescription medications
Often, ANOCs come in the mail, but you may receive the document via email. If you don’t receive an ANOC, contact your plan. Your insurance company may also have a tool that allows you to find your ANOC online.
If you’ve contacted your plan and you still can’t access your ANOC in a timely manner, reach out to a Medicare representative by calling 1-800-MEDICARE (1-800-633-4227).
What should you look for in your Medicare ANOC?
At the beginning of your ANOC, there will be a table of contents that can help you understand what information the letter contains. As you read through the document, you’ll want to look for information about:
Medications: Are the medication you take covered by your plan? Check what tier they’re in and what the copays are to make sure your medications are still affordable.
Pharmacies: Is your regular pharmacy in your plan’s network? If not, are there in-network pharmacies near you or mail-order options that suit your needs?
Costs: How will any changes affect your out-of-pocket costs, such as your deductible, copays, and coinsurance?
Providers: If your ANOC is for a Medicare Advantage plan, are your preferred doctors, specialists, and hospitals in your network in the coming year?
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Changes to the list of covered medications (formulary)
Pay particular attention to the summary of your new formulary. Plans can add and drop medications from their formularies. What you must pay out of pocket for covered medications can change, too. If a medication is moved to a higher tier, it can cost you more.
Plans may place certain restrictions on medications, as well. You may need a prior authorization before your plan covers a medication, for example. Or you might be required to go through step therapy, which is when you have to try a less costly medication before a pricier option is covered.
Changes to the pharmacy network
Changes to your plan may mean that your favorite pharmacy is no longer in your network. You may find that your medications are available at other pharmacies near you, or that you will need to have them delivered by a mail-order pharmacy.
Increases or decreases in out-of-pocket costs
Your Medicare plan may or may not include an evidence of coverage (EOC) document with the ANOC. An EOC is a more detailed look at the plan’s costs and benefits.
Changes to the provider network
Check that your regular healthcare professionals will be covered, or in network, in the coming year. Your plan’s network may no longer include members of your care team, particularly the specialists, that you need to continue to see.
When can you make changes to your Medicare plan after getting your ANOC?
Your ANOC should arrive before the Medicare open enrollment period from October 15 to November 7, which is when you can make changes to your plan. If you have a Medicare Advantage plan, you can also make changes during Medicare Advantage open enrollment from January 1 to March 31.
You can use Medicare’s plan finder tool to compare your Medicare Advantage or Part D plan to others available in your area.
You should consider changing Medicare plans if you:
Have new health needs that aren’t covered by your plan
No longer need a particular benefit that costs you more
Need prescription medications that are not covered or are not affordable under your plan
Have a plan that’s no longer affordable
Have a plan that has changed or removed benefits that you need
Who should you talk to if you have questions about your ANOC?
If you have questions about your ANOC, you can contact your plan directly or call 1-800-MEDICARE (1-800-633-4227).
You can also get free, unbiased Medicare advice from a local counselor through your State Health Insurance Assistance Program (SHIP).
The bottom line
If you have a Medicare Advantage or Medicare Part D prescription medication plan, your annual notice of change (ANOC) letter summarizes updates to your plan for the coming year. You’ll want to carefully review this letter for information about what your plan covers, its pharmacy or provider network, and your costs. This information can help you decide if you want to keep your plan or search for and choose a new one during Medicare open enrollment from October 1 to December 15. If you have Medicare Advantage, you can also change your plan during an extra open enrollment period from January 1 to March 31.
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References
Cigna Healthcare. (2024). Annual notice of changes (ANOC).
Medicare Interactive. (n.d.). Annual notice of change (ANOC).
Medicare.gov. (n.d.). Evidence of coverage (EOC).
Medicare.gov. (n.d.). Explore your Medicare coverage options.
Medicare.gov. (n.d.). Medicare complaint form.
Medicare.gov. (n.d.). Plan annual notice of change (ANOC).
Medicare.gov. (n.d.). Contact Medicare.
