Medicare Advantage Plans
Medicare Advantage plans are private health care insurance plan options that are
part of the Medicare program. If you join a Medicare Advantage plan, you typically
receive all your Medicare-covered health care through that plan. Your plan may include
prescription drug coverage in addition to coverage for health care services. Medicare
Advantage plans come in a variety of types, including:
- Medicare Health Maintenance Organization (HMOs)
- Preferred Provider Organizations (PPO)
- Private Fee-for-Service Plans
- Medicare Special Needs Plans
Most of Medicare Advantage plans offer extra benefits and lower copayments than
what a senior receives with the Original Medicare Plan. The down side, though, is
that you may be restricted, as the plan may require you to visit doctors that belong
to the plan or go to hospitals belonging to the insurer's network in order to have
your services covered by the plan.
You are required to have both Medicare Part A and Part B in order to join a Medicare
Advantage Plan. In addition to paying your monthly Medicare Part B premium to Medicare,
you may also have to pay a monthly premium to your Medicare Advantage plan provider
for the extra benefits that the plan provides.
An additional important point for enrollees in Medicare Advantage Plan: your Medicare
Supplement policy won't work. Specifically, it won't pay any deductibles, copayments,
or any other cost-sharing. People who have both Medicare Advantage and a Medicare
Supplement have the legal right to maintain both, however, Medicare suggests on
its Web site that, "you may want to drop your Medigap [Medicare Supplement] policy
if you join a Medicare Advantage Plan."
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