If you have opened your mailbox recently, you have likely received a thick envelope labeled
Annual Notice of Change (ANOC). Every October, Medicare beneficiaries across Colorado review this document to see how their coverage will change for the upcoming calendar year.
In recent years, many policyholders have noticed a frustrating trend: while their Medicare Supplement policy remains steady and predictable, their standalone
Medicare Prescription Drug Plan (Part D) premium and out-of-pocket costs have climbed substantially, sometimes even approaching or exceeding the cost of their supplement policy itself.
If you are facing "ANOC sticker shock" this fall, you are not alone. Here is why drug plan costs fluctuate so rapidly, and how you can take action before the December 7 deadline to protect your wallet.
Medigap Stability vs. Prescription Plan Volatility
To understand why your prescription plan costs may feel unpredictable, it helps to look at how different types of coverage operate:
- Medicare Supplement Plans: Designed to fill the "gaps" in Original Medicare (such as copays and deductibles for doctor visits and hospital stays). As we explored in our guide on Medicare Supplement Freedom of Choice, because these plans are standardized and do not cover retail prescriptions, their structure remains highly stable year after year.
- Standalone Part D Plans: Managed by private insurance companies, prescription drug plans adjust their pricing, deductibles, and formularies (lists of covered drugs) every single year.
Because drug manufacturers update pricing and health insurance carriers adjust their plan designs annually, a prescription plan that was the most cost-effective option for you two years ago may no longer be the best fit today.
What to Check in Your Annual Notice of Change (ANOC)
When reviewing your Part D plan changes for the coming year, keep an eye out for three key details:
- Monthly Premium Adjustments: Has your base monthly premium increased?
- Formulary Changes: Have any of your medications moved to a higher tier (which increases your copay), or do any now require prior authorization or step therapy?
- Pharmacy Network Status: Is your preferred local pharmacy still listed as a "preferred cost-sharing pharmacy" for your plan? Just as with evaluating provider networks, using a standard or non-network pharmacy instead of a preferred one can noticeably increase your retail costs.
Why Staying on "Auto-Pilot" Can Be Costly
Because Medicare Supplement plans provide such reliable, hassle-free care throughout the year, it can be tempting to let your standalone prescription drug plan auto-renew without a second thought.
However, accepting automatic renewals on Part D plans without a quick annual review is one of the most common ways beneficiaries overpay. While a hospital indemnity plan can help protect against unexpected inpatient health copays, reviewing your Part D plan ensures you aren't leaking money on routine prescription expenses.
The
Annual Enrollment Period (AEP), which runs from October 15 through December 7, is your official window to compare available prescription drug plans and make changes for the upcoming year.
Simplify Your Drug Plan Review with Us
Evaluating dozens of drug plan variations, deductible thresholds, and tier structures on your own can feel overwhelming. That’s why Choice City Health makes the review process simple, secure, and stress-free.
Through our secure survey tool, you can submit your updated medication list and preferred pharmacy in just a few clicks.
How It Works:
- Submit Your List: Access our secure review tool
HERE to enter your current medications, dosages, and primary pharmacy.
- We Run the Analysis: Our licensed insurance agents analyze the available plans in your Colorado zip code against your exact prescription list.
- Get Your Personal Recommendation: We identify the plan option that minimizes your total annual out-of-pocket expense (combining premiums + drug copays).
Don't let unexpected prescription plan costs disrupt your retirement budget. Take two minutes today to update your list so our team can ensure you enter the new year with total peace of mind.
Contact Choice City Health to Request Your Prescription Review →
Disclaimers:
Enrollment in the described plan type may be limited to certain times of the year unless you qualify for a special enrollment period.
Not connected with or endorsed by the U.S. government or the federal Medicare program.
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.
