Medicare Advantage also known as Part C
As part of the balanced budget act of 1997, Medicare was allowed to subcontract private companies to do administration. It took the companies a few years to develop and release these “Medicare advantage”plans, however now they are very popular and about 25% of the Medicare population is now enrolled in this form of Medicare.
If you enroll in a Medicare Advantage plan, you still have Medicare and are entitled to all of the part A and Part B benefits however the private insurance companies do all of the administration and pay all of the claims. Medicare pays these companies subsidy dollars out of the money you pay into the Medicare system via part B premiums. The amount they receive differs from county to county based on a complex formula. These Medicare Advantage plans must spend a certain portion of the money they receive on consumer benefits, so many of these plans include part D drug benefits along with the part A and B benefits. In some instances these plans also contain benefits that go beyond what original Medicare covers altogether and can contain benefits such as gym memberships, eye glasses, and routine dental coverage. Because they are subsidized by Medicare they can also offer low monthly premiums. In fact there are certain areas of the country where there are zero monthly premium plans. Thus you can see why they would be popular.
Medicare Advantage plans have several different formats in which they are operated. The most common are as follows: HMO (Health Maintenance Organization), PPO (Preferred Provider Organization), PFFS (Private Fee for Service Plan), SNP (Special Needs Plan), MSA (Medical Savings Account). Here is a short video on the topic:
If you enroll in a Medicare Advantage plan, you still have Medicare and are entitled to all of the part A and Part B benefits however the private insurance companies do all of the administration and pay all of the claims. Medicare pays these companies subsidy dollars out of the money you pay into the Medicare system via part B premiums. The amount they receive differs from county to county based on a complex formula. These Medicare Advantage plans must spend a certain portion of the money they receive on consumer benefits, so many of these plans include part D drug benefits along with the part A and B benefits. In some instances these plans also contain benefits that go beyond what original Medicare covers altogether and can contain benefits such as gym memberships, eye glasses, and routine dental coverage. Because they are subsidized by Medicare they can also offer low monthly premiums. In fact there are certain areas of the country where there are zero monthly premium plans. Thus you can see why they would be popular.
Medicare Advantage plans have several different formats in which they are operated. The most common are as follows: HMO (Health Maintenance Organization), PPO (Preferred Provider Organization), PFFS (Private Fee for Service Plan), SNP (Special Needs Plan), MSA (Medical Savings Account). Here is a short video on the topic:
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Now that you have a greater understanding of Medicare Advantage, its time to find the plan that fits you best. Click on Get a Quote or Web Chat to take the next step.
Now that you have a greater understanding of Medicare Advantage, its time to find the plan that fits you best. Click on Get a Quote or Web Chat to take the next step.