Retirement: Medicare Annual Notice of Change ANOC
You can skip this one if you're still working or not thinking about Medicare.
I retired directly into Medicare. I was eligible for the Corning Inc. RRA (Retiree Reimbursement Account), which is $1,350 per year per person. Yes, my wife will also be eligible when she reaches Medicare age. As I was preparing to retire, I had to decide if I was going to use traditional Medicare (gap insurance and Part D drug plan), or Medicare Advantage. I chose the traditional Medicare path.
To receive the RRA each year, you must sign up with AARP/United Healthcare directly. There's a special Corning website. No Medicare broker can do this for you. I selected the Plan N gap plan, which was about $90/month, and the more expensive Part D drug plan, which was something over $100/month. This was year #1. I would collect all of my $1,350 RRA.
In the Fall of 2025, I decided I could reduce my costs by selecting a less expensive AARP/United Healthcare Part D drug plan (for 2026). My Part D cost dropped to about $56/month. As I write this in the Fall of 2026, this seems to have been a good choice.
I think we dream of a retirement where we can "set it and forget it", but Medicare is not one of those things. I recently received my "Annual Notice of Change", also known as ANOC, for my Part D drug plan. It's a fancy document that explains how the plan will change for 2027. The monthly premium is changing from $56.90 to $150.20. The reasons for the large premium increase are not explained at all.
Some people will point to the cancellation of the government Part D Premium Stabilization Demonstration that made the news earlier this year. The internet says that subsidy was "generally" $10 to $20 per month, so I'm not sure that explains this. I called United Healthcare to ask about the premium increase. The person I spoke to could not explain it, and pointed me at Medicare (and their 800 number) to explain it. I called the number I was given. The person was very nice, but could not explain the increase either. They explained that I could shop for another plan, which is what I'll be doing.
Coincidentally, my AARP/United Healthcare Medigap plan premium just went up from $95.39 to $125.21 per month.
When I started with Medicare, I was a bit concerned that my gap and drug plan insurance premiums might not get me to the $1,350 RRA yearly limit. No longer an issue. If you chose a Medicare Advantage plan with lower premiums that won't add up to the yearly RRA number, you can also submit your Medicare Part B premiums for RRA reimbursement. So there's no reason why you can't collect your full RRA each year. The key requirement continues to be a AARP/United Healthcare insurance plan signed up for via the Corning-specific link.
If you want to know more about the yearly Medicare ANOC process, I thought these two videos did an excellent job of explaining.
Shocking Medicare Plan Changes Coming for 2027
50 MILLION Seniors Will Get This Medicare Letter For 2027
Replies
From Bruce R.:
Good note as always. I also did traditional Medicare, and I also went with the Corning/AARP/United Healthcare option for gap insurance. I shopped around to compare prices, and this option was the best financially even without the RRA. However, their part D plans were wildly more expensive. I went with Wellcare, which was 3X less. You might consider them. As I remember, if you go to the government website, you can type in your medication's, and they will give you suggested part D providers.