Medicare Advantage Plans are offered by private companies approved by Medicare. A Medicare Advantage Plan is quite different than a Medicare Supplement Insurance (Medigap) policy since they replace original Medicare and primarily provides your Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance) coverage. Most also cover vision, hearing, and dental coverage. Medicare pays these private companies to provide your Medicare benefits.
You must first have both Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance) coverage and live in the area covered by the plan you want to join. If you have the End-Stage Renal Disease (ESRD), you will not be able to avail a Medicare Advantage Plan coverage.
There is a monthly premium for the services provided by your Medicare Advantage Plan. This is in addition to your monthly Medicare Part B premiums and Medicare Part A premiums if you haven’t availed the premium-free Part A. Medicare Advantage Plan monthly premiums costs differ depending on your private insurance provider and the benefits and coverage your plan contains.
Medicare Advantage plans have a mandatory maximum out-of-pocket limit (MOOP) of $6,700 for 2018 although many plans have much lower. Once you reach this amount, you wouldn’t need to pay anything for your covered health care expenses for the rest of the year.
Just remember that Medicare Advantage Plans replace the original Medicare. It does not provide you with comprehensive coverage. You still have to pay a lot of out-of-pocket costs and expenses. You may be saving on monthly premiums but your other expenses would be far much greater than your supposed savings. Don’t wait to find yourself in a difficult situation first before shelling out a little more for monthly premiums that would ensure you a comprehensive coverage.
Medicare and in turn Medicare Advantage Plans only cover a portion of your healthcare expenses so make sure to have a supplement to completely fill in the “gaps” left by it. You can search for available Medicare Supplement Plans on our website that would give you the coverage and benefits you want and need. You can also call us at (855) 230-0801 for more information and assistance in finding the policy that suits you best.