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The truth about Medicare Advantage

Prior to making any decisions about Medicare, you need to be aware and understand these important truths about Medicare Advantage plans.

Medicare Advantage was created in the late 90’s. Medicare Advantage plans are privatized plans that have a combination of Medicare Parts A, B and part D into one plan and provided by a private insurance company. These plans  are also known as managed care plans because they use networks such as preferred provider organizations or health management organizations or. (PPO or HMO)

Medicare Advantage is a network-based plan.

Something vital you need to understand about Medicare Advantage plans is that they all depend on some kind of network of providers. These networks come either as PPO, HMO, or PFFS. There may be some other variations, but these are the most common. Medicare Advantage plans are not the same.

Although they are structured the same way; Medicare Advantage plans can vary dramatically from one plan to another. This means that you have to do your homework before joining any of these plans. You should first determine if your providers are on the network.

The maximum out-of-pocket is the second largest factor that most individuals ignore. Do not be tempted to compare small things like doctor visits, unless the doctor’s office is your second home!

MA plans offer a maximum out-of-pocket.

One of the biggest benefits of Medicare Advantage is the maximum out-of-pocket. Original Medicare does not give you that protection. The “Maximum Out-of-Pocket” feature of Medicare Advantage offers a high level of security for persons who can’t afford Medicare supplement or just want to save some money.

Medicare Advantage is still part of Medicare. 

I say this because many people seem to believe they lost their Medicare benefits when they signed up for an Advantage plan. But, the truth is that Medicare Advantage is actually the part C of Medicare. Truly, it overrides your benefits from Part A and Part B, but that’s actually a good thing for you, because in many cases it allows you to pay no large deductibles and that’s 20%.

Medicare Advantage is not for everyone!

It will be wrong to say that one plan works for everyone. Unfortunately, because every plan is different and your needs are different from the next person; I cannot tell you to enroll for a specific plan. But I can tell you that some of the most popular plans are offered by Healthspring, United Healthcare, Humana, and Wellcare.

Imagine these questions first; how important is the freedom of choice for your healthcare providers? How important are the costs? How healthy are you? After you have answered these questions, you can easily decide whether you want to be in Original Medicare with a Medicare supplement or an Advantage Plan.

Medicare Advantage Plans are provided by private insurance companies approved by Medicare. According to the rules set by Medicare, it pays a fixed amount to the private insurance company every month to cover its expenses.

Medicare Advantage plans can come in various ways, and the benefits can vary according to plan.