Medicare AEP versus OEP: What’s the Difference?

Understanding the Differences

If you’re a senior citizen, or the parent of one, then you have likely heard about Medicare Advantage. However, there are two types of Medicare Advantage plans: AEP and OEP. In this article we’ll break down the differences between these two types of health insurance so that you can make an informed decision when choosing your plan for next year.

You should most definitely take a look at the chart called Medicare AEP vs OEP and find exactly what you are looking for.

Medicare AEP VS OEP

The difference between Medicare AEP and OEP lies in their cost-sharing structures with beneficiaries paying more out-of-pocket expenses under the latter option than they would if they had chosen to enroll in a traditional fee-for service plan.

-AEP plans limit the number of coinsurance payments to $2250 per year for a single individual, and offer one free preventive care visit each year.

-OEP plans are more expensive because they include a deductible in addition to other cost sharing requirements that contribute towards paying your expenses. The average OEP plan has an annual deductible of around $550 dollars before beneficiaries can receive coverage from their insurance company while AEP plans do not have this requirement, meaning you will never pay out any money before your coverage kicks in if you enroll in an AEP plan.

The difference between Medicare Advantage Plan types is significant enough so as to warrant giving it some thought when choosing what type of insurance fits best with your needs next year.