What Is A Medicare Advantage Plan?
A Medicare Advantage plan is also referred to as Medicare Part C or a MA plan. Medicare-approved private companies offer these bundled plans. This means instead of figuring out whether or not Parts A, B, or D have coverage for everything you need, all your coverage is bundled into one plan.
This article answers some of the most frequently asked questions about Medicare Advantage plans, and will let you know if these plans are right for you.
Also Read: Medicare Advantage Vs. Medicare Supplement Plans
How Do Medicare Advantage Plans Work
Medicare pays a fixed amount to insurance providers to create Medicare Advantage plans. This si why many Medicare Advantage plans can use $0 premiums. As we mentioned, the plans still need to follow the same guidelines as normal Medicare. Medicare Advantage plans charge different out-of-pocket costs and have a limited network you’ll need to work within.
You only have to pay a set limit on your out-of-pocket costs for Part A and Part B services. Once you reach the limit, you won’t pay anything on these covered services. This means that even though you might pay different out-of-pocket costs, you still get the same Medicare coverage.
Rather than Medicare deciding what’s covered, the private Medicare-approved company will comprise their own plan and coverage. This means that in addition to your regular coverage, you’ll also receive additional coverage for things that regular Medicare doesn’t cover.
It’s important to remember that you’ll disenroll from your Medicare Advantage plan if:
- You’re in a Medicare Advantage HMO or PPO.
- You join a separate prescription drug plan.
To enroll in a Medicare Advantage plan, you’ll need to wait for either general enrollment from January to March, or open enrollment for the best savings.
Also Read: A Step-By-Step Guide To Open Enrollment 2021
Advantages And Disadvantages Of Medicare Advantage Plans
The Medicare Advantage plans still need to follow the same Medicare guidelines as B plans. This means that companies can only charge a similar fixed amount comparable to Medicare. There are a lot of advantages and disadvantages to Medicare Advantage plans that may help you decide whether or not it’s right for you.
Advantages To Medicare Part C
Medicare Advantage plans often provide more coverage at a better price. Most Medicare Advantage plans offer coverage for things regular Medicare won’t, such as dental and vision. This means you can find plans with coverage for:
- Vision
- Hearing aid
- Dental
- Fitness programs
- Over-the-counter and prescription drugs
Unlike Medicare plans, you don’t pay additional fees or premiums for Part B or prescription drug coverage. You will, however, pay higher out-of-pocket costs for some of your medical costs.
Disadvantages To Medicare Part C
Medicare Advantage plans have a limited network for non-emergency care. In many cases, you will also have to have a service or product approved ahead of time for it to be covered by your plan. Some other disadvantages to Medicare Advantage plans include:
- Needing a referral to see a specialist.
- Higher or different out-of-pocket costs.
- Restricted networks for non-emergencies.
- No covered care outside the US included.
Medicare Advantage plans work best for seniors with chronic conditions. This means Medicare Advantage plans are best if you need more coverage for things like hearing aids and dentures. You can also compare coverage and cost prices with other competitors by calling Quote Purple.
Also Read: Your Medicare Part B Coverage Explained
How Much Do Medicare Advantage Plans Cost
It’s estimated that 2021’s Medicare Advantage’s monthly premium is expected to decrease by 11%, making 2021’s premiums an average of $21.00. Medicare Advantage plans change from person to person. Remember to consider the cost of your premium, deductible, copay and coinsurance, and your out-of-pocket costs when you receive a quote.
In general, the cost of Medicare Advantage plans change depending on:
- What state you live in.
- What healthcare services you need and how often you access them.
- If your doctor or supplier accepts pre-approved amounts.
- If your plan offers more benefits with an additional premium.
- Whether or not you can receive Extra Help from Medicaid.
You can find even more savings during Open Enrollment. If you want to compare quotes between Medicare, Medicare Advantage, or private plans, you can also call Quote Purple to speak with one of our partners.
Also Read: How Your Income Affects Your Medicare