MedicarePartD.guide

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Caution: Reconsider dropping your Medicare drug plan to save money

Changing Medicare plans · published Jul 14, 2023

Inflation may be impacting your wallet -- and with changes in prescription costs and your healthcare needs, you may now be looking for a more affordable alternative to your current Medicare healthcare and prescription drug coverage.  Medicare does provide Special Enrollment Periods (SEPs) that allow you an opportunity to change Medicare plans outside of the annual Open Enrollment Period that ended December 7th.

However, this site cautions against trying to save money by withholding your Medicare plan premiums or dropping your Medicare plan coverage - and here are a few common questions dealing with disenrollment and paying monthly premiums.

Question:  Can I just disenroll from my Medicare Part D plan and save my monthly premiums if I am finding that a drug discount card covers all of my medications?

Not exactly.  Just like changing your Medicare plan coverage mentioned above, if you wish to disenroll from your Medicare Part D coverage outside of the annual Open Enrollment Period (AEP) that ended December 7th, in most cases, you will need to find a Special Enrollment Period to make the change.


Question:  If I cannot find an SEP to change or drop my drug plan, what happens if I just stop paying my monthly premiums?

You may be disenrolled from your plan, but … we do not recommend this action.

If you stop paying your Medicare plan premiums, your Medicare plan can:
  • involuntarily-disenroll you from the plan,
  • send your unpaid account to a collection agency, and
  • possibly make you pay back premiums should you ever try to re-enroll with the same Medicare plan carrier.
Plus, after 63 days without creditable prescription drug coverage, you may be liable for a permanent late-enrollment penalty should you ever choose to enroll in a Medicare Part D plan in the future.


Question:  If I receive all of my medications through the VA, can I disenroll from my Medicare Part D plan without any future penalty?

Yes.  If you are qualified to receive VA or TRICARE drug benefits, you are granted a Special Enrollment Period and allowed to disenroll from your Medicare Part D plan outside of the annual Open Enrollment Period (AEP).  And since your VA (or TRICARE) prescription drug benefits are considered “creditable” drug coverage, you will not incur a late-enrollment penalty if you decide to someday re-enroll in a Part D plan.  You can click here to read more about disenrollment outside of the AEP when you have creditable drug coverage.