AZ Blue has announced that they will no longer offer Medicare Advantage Prescription Drug Plans (MAPD) in Arizona in 2025.
If you’re one of the thousands of Arizonans impacted by Blue Cross Blue Shield Arizona’s decision to drop Medicare Advantage Drug Plans, you might be feeling a bit lost right now.
But don’t worry—we’ve mapped out some helpful next steps for you in this article, so that you can confidently move into a new plan.
But first, why is this happening?
Why Is AZ Blue Shutting Down Medicare Advantage Plans in 2025?
BlueCross BlueShield Arizona is one of several insurance companies leaving Medicare Advantage markets in 2025.
But why are they leaving?
The decision to close their plans mainly comes after the CMS introduced unprecedented regulations for Medicare Advantage Plans in 2025, including a funding cut.
Aside from that, the Inflation Reduction Act is also reducing Medicare Part D beneficiaries’ maximum out-of-pocket spending to $2,000 in 2025, which is putting pressure on prescription drug plans.
These changes have caused several insurance companies, including AZ Blue, to drop their Medicare Advantage Plans in areas where they believe they won’t be as profitable.
What Will Happen to AZ Blue Medicare Advantage Enrollees?
On January 1, 2025, everyone enrolled in an AZ Blue Medicare Advantage Prescription Drug (MAPD) plan will lose their coverage.
However, if they enroll in another plan during the Annual Enrollment Period (October 15 – December 7), their current coverage will end on December 31, and their new plan’s coverage will begin on January 1.
If they miss the Annual Enrollment Period, they will still have until December 31 to change plans. If they don’t, they will be without drug coverage starting January 1, 2025.
If they fail to enroll in another plan, they will automatically revert back to Original Medicare on January 1.
4 Steps To Take If You’re Losing Your Coverage
If you or someone you know are going to lose your AZ Blue Medicare Advantage Prescription Drug coverage in 2025, here are four steps to help you smoothly transition into a new plan.
Step #1: Confirm You’re Losing Your Plan
So far, Blue Cross Blue Shield is only dropping its Medicare Advantage Prescription Drug (MAPD) plans from the Arizona market in 2025. If you’re enrolled in another Blue Cross Blue Shield Arizona Plan or another BlueCross BlueShield MAPD Plan (not in Arizona), you shouldn’t be affected by this change (unless your current plan explicitly states that it’s shutting down).
AZ Blue should send you a notice that they are not renewing your plan. You may also contact your insurance company to ask if you are losing your plan in 2025.
You can also call us directly at +1 877-360-6565 (TTY: 771) and we’ll investigate for you. As licensed insurance agents, we can walk you through your options — and it doesn’t cost you anything to work with us.
Step #2: Shop For a New Plan During the Annual Enrollment Period or Special Enrollment Period
Generally speaking, if your plan is shutting down in 2025, you can technically switch plans until February 28. However, if you wait this long, you would be without full coverage from January 1 to February 28. That’s why most insurance agents recommend you get new coverage by December 31.
If your insurance company is not renewing your Medicare Advantage Plan, you also qualify for a Special Enrollment Period. This period runs from December 8 to the last day of February of the following year. During this time, you may enroll in another Medicare Advantage Plan available in your area.
Step #3: Consider a Medicare Supplement Plan
Since your Medicare Advantage Drug Plan is leaving your area, you may revert to Original Medicare and enroll in a Medicare Supplement Plan A, B, C, D, F, G, K, or L without undergoing medical underwriting (even if you’re already past your Medigap Open Enrollment Period).
This guaranteed issue rights period begins 60 days before your Medicare Advantage Plan coverage ends — and it ends 63 days after your Medicare Advantage Plan coverage ends.
You may also apply for a Medicare Supplement Plan M or N, but you may have to pass medical underwriting before getting one of these plans.
Note: Medicare Supplement Plans don’t cover most prescription drugs. People switching from a Medicare Advantage Plan to a Medicare Supplement Plan typically also enroll in a standalone Medicare Part D prescription drug plan.
Step #4: Contact a Licensed Insurance Agent to Learn About Your Options
If you want help finding a new plan, you can contact a licensed insurance agent for help.
A licensed insurance agent can listen to your concerns, answer your questions, help you compare plans in your area, and find the best plan fit for you, to enjoy a smooth and hassle-free transition into a new plan.
Licensed insurance agents work with several different insurance companies, so they can provide unbiased advice on which plan may suit your specific needs — at no cost to you.
If you need help in these confusing times, you can always call or text us at +1 877-360-6565 (TTY: 771), and our team will help you figure out what’s next.
Pitfalls to Look Out For
Aside from the four steps listed above, here are a few pitfalls to look out for during this transition period.
- Enrolling in the first plan that pops up – Some people want to get on a new plan as soon as possible. This haste can be costly if you end up with a plan that’s not the right fit for you. That’s why it’s important to take the time to understand your options and choose wisely. A licensed insurance agent can be a great help if you want to move on to a new plan quickly without making common mistakes.
- Thinking you have to stick to a plan you enrolled in – If you already enrolled in a plan, you can still switch before the window closes. If you find another plan that’s a better fit for you than the one you enrolled in, you can switch as long as it’s still the Annual Enrollment Period. Whatever plan you enroll in last is what will take effect on January 1.
- Getting a biased licensed insurance agent – There are some biased licensed insurance agents who prioritize commissions over helping you find the best plan for you. One way to weed out biased agents is to ask them if they help people enroll in both Medicare Advantage Plans and Medicare Supplement Plans from multiple companies. An unbiased agent should offer you several options.
- Thinking you need to stick with Blue Cross Blue Shield Arizona – You can enroll in other plan options. You don’t have to stay with AZ Blue.
Conclusion: Don’t Panic!
Discovering that you’re losing your coverage can be a scary thing. However, if you follow the four simple steps above and avoid the potential pitfalls, you should have a smooth transition into a new plan for 2025.
So don’t panic!
Review your options, and feel free to call or text our team of licensed insurance agents below for help finding the right plan fit for you: