The effective date (or starting date) for your Medicare Part D prescription drug plan or Medicare Advantage plan coverage depends on the particular enrollment period (AEP, SEP, or IEP) you select when you apply for your Medicare plan (see below for details and examples).
(1)
AEPIf you choose
Annual Enrollment Period (AEP) as your enrollment period, your Medicare Part D plan will become effective on
January 1st of the new plan year. The Medicare annual Open Enrollment Period starts each year on October 15th and continues through December 7th.
So, if you enrolled on December 6th and chose AEP or did not make an enrollment period selection, your effective date would be January 1st of the new plan year - that is, your Medicare plan coverage will begin on January 1.
(2)
SEPIf you choose
Special Enrollment Period (SEP) as your enrollment period, your Medicare Part D plan will become effective on
1st day of the month following the receipt of your enrollment.
So, if you enrolled in December and chose SEP as your enrollment period, your effective date would be January 1st -- the first day of the month following receipt of your enrollment. See our Special Enrollment Period article for details and examples. Please note, if you choose SEP as your enrollment period, you will need to meet the requirements of that SEP. For example, you permanently moved out of your Medicare plan's Service Area and now need to join another Medicare plan.
(3)
IEPIf you are new to Medicare and choose
Initial Enrollment Period (IEP) as your enrollment period,
your effective date will depend on when you enroll as compared to the month of your Medicare eligibility. As a note, the Initial Enrollment Period is a seven (7) month window that begins three (3) months before your month of eligibility and ends three (3) months after your month of eligibility.
If you enroll in the three months prior to your month of Medicare eligibility, your effective date is the 1st day of your month of eligibility.
If you enroll into a Medicare Part D plan during your month of eligibility (such as when you turn 65) or during the three months following the month of Medicare eligibility, your Medicare Part D plan will be effective on the 1st day of the month following receipt of your enrollment.
The
chart below illustrates the seven months of the IEP window and enrollment vs. effective or starting date.
Initial Enrollment Period (IEP)
A seven (7) month window
|
Enrollment Month: |
Month
-3 |
Month
-2 |
Month
-1 |
Eligibility Month |
Month +1 |
Month +2 |
Month +3 |
Effective Date: |
1st day of eligibility month |
1st day of eligibility month |
1st day of eligibility month |
1st day of month after enrollment received
|
1st day of month after enrollment received |
1st day of month after enrollment received |
1st day of month after enrollment received |
January Example: Initial Enrollment Period (IEP) for a person who is initially eligible for Medicare in January.
Your 7-month IEP window is from October through April.
Your effective date is shown below the enrollment month
|
Enrollment Month: |
Oct |
Nov |
Dec |
January
(eligibility month)
|
Feb |
Mar |
Apr |
Effective Date: |
Jan
1st |
Jan
1st |
Jan
1st |
Feb
1st
|
Mar
1st |
Apr
1st |
May
1st |
So in this January IEP example, if you wanted Medicare Part D prescription drug coverage or Medicare Advantage plan coverage starting on January 1, you could enroll anytime in October through December.
If you feel that your health is changing, you may wish to consider waiting until later in December so that your Medicare plan most accurately reflects your most current health and prescription needs.
However, if you use no prescriptions, are in good or stable health, and you wish to save on monthly premiums, you may wish to consider enrolling in April with a May 1st effective date so that you have saved the monthly Medicare plan premiums for the first part of the year.