Seven Costly Medicare AEP Mistakes to Avoid in 2026

The 2026 Medicare Annual Enrollment Period (AEP) brings unique challenges. With changes under the Inflation Reduction Act and anticipated plan exits across the market, this year requires extra attention. Missing key updates could cost you higher premiums, unexpected out-of-pocket expenses, or losing coverage altogether. Here’s how to navigate AEP 2026 while avoiding common mistakes.

1. Ignoring Your Medicare Annual Notice of Change

The Annual Notice of Change (ANOC) is a document sent to Medicare beneficiaries detailing changes in coverage, service area, or costs that take effect the following January. Reading it carefully ensures you know which adjustments may affect your plan choice.

Your 2026 ANOC Review Checklist

Skimming your ANOC could cost you this year. Use this checklist to spot hidden changes:

• Check for the Non-Renewal Notice: Some plans may not be renewed in 2026; knowing early gives you time to switch.

• The $2,100 Out-of-Pocket Cap Adjustment: Verify if your plan reflects the new Part D cap.

• The Premium vs. Deductible Shift: Changes could alter whether a lower premium plan is truly cost-effective.

• Drug Tier Upgrades: Higher-tiered medications may increase your out-of-pocket costs.

• Provider Network Lean-Outs: Ensure your preferred doctors remain covered in-network.

2. Not Realizing Your Plan is Leaving Your Area

Millions of beneficiaries were affected by plan terminations in 2025. Market shifts like this happen every year. Failing to verify whether your plan is still available could leave you without coverage or auto-enrolled in a plan that doesn’t meet your needs.

3. Not Checking the New $2,100 Part D Spending Cap

In 2026, Medicare Part D enrollees will benefit from a new $2,100 cap on annual out-of-pocket prescription spending. Ignoring this change could mean paying a higher premium for a benefit that is now automatic. Check your plan to ensure you’re taking full advantage of it.

4. Assuming Your Doctor is Still In-Network

Some Medicare plans work exclusively with local networks. Networks can change, so if your doctor matters to you, confirm they remain in-network each year. Even if you aren’t tied to a specific provider, reviewing your plan annually ensures you’re getting the most affordable coverage.

5. Mixing Up Medicare Plans vs. Medicare Supplement Plans

Medicare Advantage and Medigap (Medicare Supplement) plans have different rules and protections. Staying in Medicare Advantage past your initial trial period can trigger the lock-in effect, potentially losing your guaranteed issue rights. This could prevent switching to a Medigap plan later due to health-based underwriting. Knowing the differences before enrollment is critical in 2026.

6. Signing Up for the Same Medicare Plan as Your Friends or Spouse

Friends and family are great references, but your health needs are unique. Medication usage, preferred pharmacies, and doctor visits all affect total costs. Choosing a plan solely based on others’ experiences could lead to overspending or coverage gaps. Compare multiple options to find the best fit for your situation.

7. Not Being Aware of Medicare Scammers

Medicare fraud is a real threat. Protect personal information like your Social Security number, bank account details, and Medicare ID. Only share data with authorized sources. Learn more about safeguarding yourself at Medicare.gov.

How to Avoid Costly Medicare Enrollment Errors

A smart way to prevent mistakes is to work with a licensed insurance agent. They can cross-reference multiple carriers and plans to ensure you find the most suitable and cost-effective coverage. With market changes and new regulations in 2026, professional guidance can save time, stress, and money. A SelectQuote licensed insurance agent can help you understand the fine print so you can avoid mistakes that could impact your coverage, costs, or access to care.

Let Us Help You Navigate the Complexities of Medicare Plans

Medicare enrollment can seem overwhelming, but SelectQuote can help. Our licensed insurance agents will get to know your needs and then independently shop Medicare Supplement Insurance plans and Medicare Advantage plans on your behalf. The service is free, and there’s no obligation to enroll.