Medicare Mail: Help Your Clients Sort Out What to Trust and What to Toss

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Throughout the year, older adults will receive countless pieces of mail about Medicare. 

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If your clients have been receiving Medicare mail and don’t know what to make of it, you know exactly what we’re talking about. Maybe they’re asking you, their trusted financial advisor, about the significance of all these flyers. They don’t want to miss an important deadline or miss out on information that might affect their healthcare coverage or premiums. 

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You might not have all the answers or know what all that Medicare mail is about. We don’t blame you, and we can help you sort out the facts about Medicare mail.

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First, know that your clients who are 65 and older will receive Medicare flyers in the mail year-round, with an influx in the fall. That’s because Medicare’s open enrollment period begins in mid-October. Some of this mail contains important information, and some do not.

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Becoming flooded with information about anything — but particularly something as complex as healthcare — is enough to overwhelm even your most levelheaded clients. That’s why being able to help them as a comprehensive financial advisor is so beneficial. 

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With a little background information and a discerning eye, you can help your clients navigate the flood of Medicare mail that they’ll receive this year.

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Where does all this Medicare mail come from?

Medicare mail comes from different sources. In the fall, Medicare-eligible individuals receive mail about open enrollment, which runs from October 15th through December 7th every year. This season brings a flurry of flyers, notices, and handbooks about current plans, plan changes, and eligibility. 

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This makes it difficult for your clients to distinguish between what’s important — and needs to be opened — and what’s not. Here’s where your clients can expect to receive Medicare mail from:

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- Government Agencies

Different government agencies, including the Social Security Administration (SSA), the U.S. Department of Health and Human Services (HHS), and the Centers for Medicare & Medicaid Services (CMS) all send out important information each year. They may send information about changes in plans, potential savings, and more. 

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- Insurance Companies

The privatization of Medicare started in the 1990s. This led to Medicare Advantage — in which private companies (approved by Medicare) sell insurance policies to consumers. Since consumers can choose to buy from one of many private companies, there’s an onslaught of advertisements about different plans and providers. 

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In addition to Medicare Advantage, many consumers with Original Medicare buy Medicare Supplement, or Medigap, insurance to cover extra costs. Private insurance companies sell and advertise these policies too.

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- Insurance Agencies

In addition to receiving mail from government agencies and insurance companies, your clients may also receive mail from insurance agencies or brokerages. These agencies are third-party organizations that work with individuals to help them choose a policy by shopping a number of carriers. 

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Some consumers may choose to work with an agent to buy a Medicare policy, but they should be careful to choose an unbiased agent who has their clients’ best interests in mind. Most Medicare insurance agents are paid on commission, so it may be difficult for clients to ascertain whether they’re being sold a policy that’s in their best interest — or the agent’s. 

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Different plans compensate agents with different amounts (i.e., Medicare Advantage commissions are often higher than Medigap and Part D plan commissions), so there may be a conflict of interest.

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As their financial advisor, you may be able to help your clients review policy recommendations from a more objective standpoint.

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- Scammers

Unfortunately, there are a lot of scammers trying to take advantage of Medicare beneficiaries. While a lot of scams take place over the phone — in which scammers impersonating Medicare employees will call asking for personal information — some will also try to scam consumers with junk mail. 

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Inform clients to lookout for: 

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• Anything touting the word “free”. 
• Anything asking for personal information. 
• Mail with fake handwriting.
• Flyers with big, colorful graphics
• Envelopes with the text, “presorted” or “PRSRT STD” — these stamps mean the mail is typically mass-sent junk mail.

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Mail with any of these red flags could be a scam designed to steal your clients’ personal information.

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How to tell which Medicare mail is important and which isn’t.

With all of this mail flooding your clients’ mailboxes (or email inboxes!), it can be tough to determine what’s important and what’s not. Help your clients determine what mail they should open and what mail they can toss with the tips below.

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Clients can open and carefully read mail that:

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• Comes from government agencies like the SSA, CMS, or HHS.
• Has an official SSA, CMS, or HHS logo on the envelope.
• Comes from their current health plan provider.

And as stated above, clients can ignore and/or report mail that:

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• Asks for their personal information.
• Asks them to call, email, or attend an informational meeting.
• Contains the word “free”.
• Has bold, colorful graphics or fake handwriting.
• Has the text “PRESORTED” or “PRSRT STD” in the postage area.

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These quick distinctions can make a big difference in the volume of mail your clients need to act on. With that said, it also helps if you can advise your clients on what important mail to expect and when they can expect to receive it. 

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What Medicare mail to expect and when. 

In May, the SSA will send out a notice to people who may be eligible for Medicare Savings Programs (MSP). These include elderly and disabled people who have limited income and resources. This mail is important to respond to for those who think they might qualify for an MSP.

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Most Medicare mail comes in the fall, beginning before the open enrollment period starts in mid-October. Here’s what consumers can expect to receive each month before and during Medicare open enrollment. 

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September:

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• Social Security Notice to Review Eligibility for Extra Help (from SSA).
• Plan Annual Notice of Change and Evidence of Coverage (from current plan).
• Plan LIS rider (from current plan).
• Loss of Deemed Status Notice (from CMS).
• Medicare & You handbook (from CMS).

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October:

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• Marketing materials for different plans (from different insurance providers).
• Plan non-renewal notice (from current plan).
• Change in Extra Help Co-payment Notice (from CMS).
• Consistent Poor Performer Notice (from CMS).

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November:

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• Reassignment Notice - Plan Termination (from CMS).
• Reassignment Notice - Premium Increase (from CMS).
• MA Reassignment Notice (from CMS).
• LIS Choosers Notice (from CMS).
• Social Security Part B & Part D Income-Related Adjustment Amount (IRMAA) Notice (from SSA).
• Social Security LIS Redetermination Decision Notice (from SSA).
• Social Security LIS and MSP Outreach Notice (from SSA).

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December:

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• Social Security Benefit Rate Change (BRI) Notice (from SSA).
• Reassign Formulary Notice (from CMS).

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All of this mail is important, and your clients should open it and respond as necessary. If they’re confused about any of this mail or unsure of how to respond, you can both learn about all of these notices, and the actions required for each, on Medicare’s website. 

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Help answer your client’s Medicare questions.

Navigating Medicare is not easy for your clients. It’s not an easy part of your job, either. But it is a crucial part of your financial plan and your client's wellbeing. Your support and knowledge can be a huge help.

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As a financial advisor, you can’t be expected to know everything about healthcare — even if it’s a critical part of your client's financial plans. That’s where we can help. At Caribou, we want to simplify the intersection of healthcare and finance. 

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If you want to learn more or are ready to introduce healthcare planning to your clients, click here to speak with our team. You can also learn more about the importance of healthcare planning by reading our free white paper, The Missing Pillar: Healthcare.

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Content in this material is for general information only and is not intended to provide specific advice or recommendations for any individual.

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