Medicare Advantage plans are relatively new and are meant to help a person by providing more benefit options to choose from. They are a way for a person to personalize her benefits to fit her needs and financial situation. If you are in an area where Medicare Advantage is an option, check out the benefits of switching to one of the plans under the system.
Function
The purpose of the Medicare Advantageplans is to provide more services that are similar to regular insurance plans with a lower out of pocket premium than the older Medicare insurance plans. Some of the plans even have prescription drug options.
Types
Medicare Advantage plans come in a few different variations from which to choose. There are Health Maintenance Organizations (HMOs), Preferred Providers Organizations (PPOs), Private Fee for Service, Medicare Special Needs and Medicare Medical Savings Account Plans. HMOs and PPOs require you to see certain doctors. A PPO may let a person go outside the plan for a higher fee. A Private Fee for Service plan is a private insurance that is approved by Medicare. A premium will be paid by Medicare for services that are covered by Medicare.
Eligibility
Check to see if you are eligible for benefits from Part A and have to be enrolled in Part B of Medicare in order to be eligible for Medicare Advantage. Some Medicare individuals are not allowed to enroll in Medical Savings Accounts. If you are enrolled in Medicare Advantage and you leave an area where it is offered, you are allowed to keep the plan as long as you are within a reasonable distance to where the services are provided. Those with certain illnesses are not eligible for this type of plan.
Considerations
To be considered for Medicare Advantage, you must have Part A and B already. The Medicare Part B premium will still have to be paid through Medicare, plus there might be a premium for the Advantage plan. If you have Medicare Gap, then you might consider dropping it once you are on Advantage. It will not work for those in the Advantage plan, so it would not be worth keeping. However, a person can legally keep it.
Warning
Weigh your options carefully before leaving the traditional Medicare plan to go to Medicare Advantage. There have been difficulties with the plans and getting certain items covered. Once you choose the Advantage plan, you are locked in to that plan for the duration of the year in which you chose it and will not be able to opt out until the next enrollment period.
Some providers seem to be pulling out of the Advantage plans due to a loss of income, and you should check to make sure that your doctor will be staying with the plan for the year in which you sign up.
Tags: Medicare Advantage, Advantage plan, Advantage plans, area where, insurance plans, Medical Savings