Understanding the Medicare Annual Notice of Change (ANOC)

What is the Medicare Annual Notice of Change?

The Medicare Annual Notice of Change (ANOC) is a formal document that outlines any changes that will affect a client’s Medicare Advantage or Prescription Drug plan (PDP) starting January 1st of the following year. The ANOC letter only outlines changes that affect Medicare Advantage plans and PDPs since the federal government standardizes Medicare Supplement plans (also called Medigap or Med Supp). 

Understanding the Medicare Annual Notice of Change Letter 

Now that we’ve covered what the ANOC letter is, here are some common questions your clients might ask. 

What information is included in the Medicare Annual Notice of Change letter?

The Medicare Annual Notice of Change letter covers any changes to a beneficiary’s Medicare Advantage or Prescription Drug plan starting January 1st of the following year. These changes could include:

• Premium increase
• Deductible increase
• Copay increase
• Coinsurance increase
• Network changes
• /who-we-serve/insurance-agencies/senior-market-insurance/medicare-terminology-101-for-senior-insurance-professionals/Formulary changes 
• Out-of-pocket maximum changes
• Prior authorization changes
• Managed care and referral changes
• Covered/included benefits changes

It’s important to know that it’s common for drug plans to be dropped or revised, which can lead to automatic enrollment in a different drug plan from the same company, which could cost more or have other undesired changes. 

Who sends the Medicare Annual Notice of Change letter?

The Medicare Advantage or PDP plan provider will send the ANOC letter each year. Typically, it is mailed, but it can also be sent via email. It will also include the Evidence of Coverage (EOC) letter.

When do the Medicare Annual Notice of Change letters arrive?

The plan’s provider will send out the ANOC each year in September for plans that renew on January 1st. 

How to Prepare Medicare Beneficiaries for the Medicare Annual Notice of Change Letter

Like any other change a Medicare beneficiary could experience, the Medicare Annual Notice of Change letter could bring unease and worry. As a Medicare insurance advisor, you must educate and communicate with beneficiaries to ensure they know what to expect.

Using an industry-specific agency management system (AMS) can help.

How to Communicate About the Medicare Annual Notice of Change

Leverage the tools in your AMS to help your team prepare for and communicate about the upcoming ANOC. Use mass communication tools like email marketing or workflow automation to get the message out quickly to all of your Medicare clients. Some key pieces of information to include in your ANOC communications are:

• A brief overview of what the ANOC is
• That changes will likely happen, but you’re there to ensure they have the coverage they need
• That you can help them run new plan comparisons
• What your clients need to do next 
• Your contact information and scheduling link so they can easily connect with you

Not sure what to say? Here’s an email template to alert beneficiaries about the Medicare Annual Notice of Change letter:

Dear [First Name],

Can you believe it’s almost September? With the changing temperatures and back to school, it’s also time for you to receive your Annual Notice of Change letter. This letter will come from your Medicare Advantage or Prescription Drug Plan provider. Be on the lookout in your mailbox or email inbox for this letter to arrive in the coming weeks.

This letter details all of the changes that will go into effect on January 1st of next year. These changes do not affect your current plan or coverage as it stands today. However, they will affect your plan starting on January 1st. Be sure to read the Summary of Important Costs section to review the financial changes, and take notes on what you’re worried about so we can review them together.

If you have any questions or concerns about the changes, please call me at [Agent Phone Number], email me at [Agent Email Address], or schedule time with me using this [LINK]. I’d be happy to run plan comparisons to ensure we find the right coverage for your needs and budget.

Additionally, I’ll be in touch in the coming weeks for our annual review of your coverage and plan for next year.

I look forward to speaking with you soon,

[Agent Name]

You can also send a text that says:

Hey [First Name], [Agent Name] here. I wanted to remind you that your Annual Notice of Change letter is coming soon. This notice details changes to your coverage starting January 1st. Give me a call if you have any questions or concerns.

Remember to keep these communications generic as they’ll go to many people. However, you can segment your audience to those with just Medicare Advantage or just a PDP to personalize the messaging more.

The one thing we can all count on in the Medicare space is that change is inevitable. The more you do to set your clients up for success, the more you can increase client retention, grow your referral base, and bring more value to your clients.

Posted by Allison Babberl on Tuesday, September 24, 2024 in Senior Market Insurance

1. client retention
2. open enrollment