Medicare Advantage Plans Provide Benefits and Savings
Medicare truly revolutionized elderly health care, and has provided those entering their senior years with confidence and support that they will have adequate health care as they continue to age. Their loved ones can feel at ease as well, because seniors now have more options than ever before. Before explaining Medicare Advantage Plans, here is a brief overview of Original Medicare. Original Medicare allows any person to go to any doctor, hospital, or health provider that accepts Medicare. Medicare pays its part of a Medicare-approved amount and the Medicare recipient also pays a share for each service he/she needs. Along with the coverage just noted, most seniors find that they need additional services such as a Medicare drug plan, as well as Medigap insurance. These supplemental insurance plan components can become pricey, and this is where Medicare Advantage Plans can be utilized.
When Medicare Advantage Plans were introduced into the Medicare A &B mix, Seniors gained the option for a health plan that would allow for lower premiums and co-pays. While the choice for care is more limited to specific providers, and in- network doctors, this option has added benefits and can also include prescription drug coverage.
Medicare Advantage Plans consist of:
- Medicare Health Maintenance Organization (HMOs)
- Preferred Provider Organizations (PPO)
- Private Fee-for-Service Plans
- Medicare Special Needs Plans
Once you are enrolled in Medicare Part A & B, enrolling into this Medicare Advantage plan is easy. When you join a Medicare Advantage Insurance Plan, you use the same health insurance card that you received from your health care plan. This Medicare Advantage Coverage is simply an addition to your existing coverage—you are still enrolled in your Medicare Program, you still have all of your previous Medicare rights and protections, and you still receive your full Medicare Part A and Medicare Part B coverage.
Other Medicare Advantage Benefits:
- You may be able to get extra benefits offered by the plan, such as coverage for vision, hearing, dental, and/or health and wellness programs.
- Out-of-pocket costs are lower than in the Original Medicare Plan (Part A & B), but vary by the services you need.
- You don’t need to buy a Medicare Supplement Insurance policy.
In some ways one can look at Medicare Advantage Insurance as an Umbrella that helps encompass smaller pieces of the healthcare puzzle. For those who need services in addition to the services Original Medicare provides, Medicare Advantage Plans provide a viable, affordable option. This generous payment system has increased the number of enrollments in this plan in recent years, significantly expanding the number of private plans offered throughout the country and making extra benefits available to more beneficiaries. However, many policymakers are nervous about the current payment system due to Medicare’s rising fiscal challenges. Maintaining a fair balance between the competing goals in this Medicare Advantage program—be it keeping Medicare fiscally strong, setting adequate payments to private plans, or meeting beneficiaries’ health care needs—will be a difficult struggle for future decision makers; for now though Seniors should embrace their health care options.
