Medicare Advantage Plans are private healthcare plans that provide features adjacent to what the original Medicare covers plus original benefits. This includes all of part A, part B, and part D coverages. These plans are only sold through private insurers who are approved by Medicare. Each month Medicare pays a fixed amount to the insurance companies towards the insured’s care. This article will detail everything you need to know about this plan.
What are Medicare Advantage Plans?
Medicare Advantage is the private alternative to Medicare health plans. They are also called Medicare Part C. The private insurance companies who sell this health policy work as the contractors of Medicare. Medicare Advantage covers the following:
Hospital Insurance
Hospice Care
Medical Insurance
Hearing
Dental
Vision
Doctor’s Visits
Some Home Healthcare Services
Health and Wellness Programs
Prescription
Types of Medicare Advantage Plans
There are five types of Medicare Advantage Plans, and they are:
HMO (Health Maintenance Organization)
It utilizes in-network healthcare providers. Their referrals are needed to consult specialists.
PPO (Preferred Provider Organization)
Different rates are charged for the out-of-network or in-network consultations.
MSA (Medical Savings Account)
These are medical savings accounts combined with healthcare plans.
PFFS (Private Fee-for-Service)
Such special payment plans offer high insurer flexibility.
SNPs (Special Needs Plans)
These help cover long-term treatment costs of chronic diseases.
Medicare Advantage Plan Cost
The Medicare Advantage Plan cost, on average, is $33 every month. However, broader options are available, which range from $0 to $300 per month. The average premium for each plan is given below:
HMO: $23/ month.
Local PPO: $ 43/month
HMO-POS: $47/month.
Cost Plan: $53 /month
PFFS: $77/month
Regional PPO: $80/month
Medicare Advantage Benefits
Easy coverage options
These plans offer convenient and easy coverage options. The two types offered by the original Medicare are Hospital and Medical Insurance. There is a requirement to buy Medicare Part D and Medigap for additional coverage. In Medicare Advantage Plan, all these options are covered.
Cost-effective options
With Medicare Advantage, individuals can save some money because there are no premiums for many plans and they also offer low or no deductibles. There is a limit set on the maximum out-of-pocket costs that the individual needs to pay during a year.
Coordinated healthcare
Medicare Advantage plans offer coordinated healthcare. With this, it is ensured that the insured has a healthcare team wherein the individual’s doctor will work along with other specialists to provide the best possible treatment for them.
Customized plan structures
These plans may be personalized in accordance with the specific needs of the insured. For example, if one is looking for a plan for some chronic condition, then SNP is the best choice.
Medicare Advantage Plans offer a range of benefits. However, certain disadvantages are also associated with them, such as lesser service provider options, complex plan offerings, additional costs for coverage, and state-centric coverage. That said, the benefits offered by these plans outweigh their drawbacks. Note that the goal of this post is to provide information only; one must always consult with an insurance expert to select the best plan that meets the individual’s needs.
