By Sept. 30th, many Medicare Advantage beneficiaries will receive a letter from their insurance carrier. That letter is known as an ANOC (Annual Notice of Change). Simply put, it previews what your plan will look like next year. Arguably the most important document you receive from your carrier each year, outside of your new membership card. The problem is that beneficiaries often don’t read it or fully understand it. This document is a critical piece in making coverage decisions during the Annual Enrollment Period, Oct. 15th – Dec. 7th. Let’s take a look at what is traditionally included in your ANOC each year.
Identifying The Plan
You will see clearly, towards the top of the page, that the document is titled Annual Notice of Change 2027. First, the document identifies the beneficiary’s current plan. This will include the carrier’s name and Type of plan (e.g., HMO, PPO, HMO-POS). It will also include the service area, whether the plan includes RX coverage, and the beneficiary’s current doctor and hospital system, if required by the plan.
Renewal Status
The next section of the letter will include the beneficiary’s Renewal Status. Remember, MAPDs are annual service contracts with an insurance carrier. Plan benefits can change year to year and, more importantly, whether the plan will be available to you next year. Plan nonrenewals are a growing concern in the MAPD world. For over a decade, plans were very stable, and roughly 99% of MAPD plans renewed each year. That era is gone; in 2025 and 2026, plans were canceled at 6% and 10%, respectively. 2027 is expected to be a lower non-renewal year than 2026 but will still be elevated at around 4-5%, with more carriers still left to report as we get closer to October.
Why are non-renewals on the rise? Simply put, insurance companies can no longer turn a profit on the plans being canceled. A few metrics have squeezed carriers’ margins, including the Inflation Reduction Act and Rx restructure, star rating overhaul, risk-based payments, and higher utilization rates. The two most impactful have been the IRA Rx restructure, which shifts over 60% of catastrophic costs to carriers, and the risk-based payment model.
If your plan is renewing, then that section is simple. If it is not renewing, it gets more complicated. After the non-renewal disclosure, you’ll get instructions on whether you are moving to a new plan within that carrier’s ecosystem or need to enroll in a new plan. Just because you have a landing spot in a different plan within the carrier ecosystem doesn’t automatically mean the plan fits your needs. Have an independent broker like Senior Legacy Partners check the market for your needs.
Summary of Changes Chart
The next section will summarize the most relevant changes in chart form. These will include things like copays, coinsurance amounts, and extra benefit changes like dental, vision, and OTC. This will give you the numbers in a clear, visible form. Watch for changes in hospital costs and outpatient coinsurance (especially chemo IV meds), as well as maximum out-of-pocket costs and, of course, extra benefits. As stated above, these plans are struggling to make financial sense after all the recent changes; the areas we highlighted will be the most likely places they will “pass” costs on to beneficiaries.
Highlights of Changes
Immediately following the chart section is a summary of the highlights depicted in the chart. Here, the cost changes will be spelled out. This section will also include things like new network utilization rules, network changes, and major drug formulary changes.
Doctors and Medical Network Changes
This is a crucial section that can significantly affect how your plan behaves next year. This section will state that provider networks may change for the upcoming year. You will need to verify whether your providers are in-network. Other carriers will provide a list of doctors you have seen and confirm whether they are in-network. Some will simply tell you to refer to a provider list. Senior Legacy Partners can quickly verify this information during our zero-obligation consultation.
Prescription Drug and Pharmacy Changes
Similar to the provider networks described above, pharmacy networks and plan formularies change from year to year. Some carriers will provide a list of the meds you take and their tier; others will simply ask you to refer to the formulary. If you meet with us, we can check this during our review.
Plan-Choice Options and Enrollment Periods
This section will further explain the results of renewal and non-renewal. It will also state your choices for the upcoming enrollment period.
Required Action and Coverage Results
The final section can be summarized as a decision tree. It tells you what actions are necessary and what the results of those decisions will be. Think of it as an if-this-then-that section to further clarify the plan options next year.
The ANOC provides crucial information regarding your plan for the upcoming year. Don’t skip reading this document. If you are confused or see something that concerns you in that document, call Senior Legacy Partners to set up a zero-obligation consultation.