Medicare Advantage Plans
What is a Medicare Advantage Plan?
Medicare Advantage Plans are Medicare Insurance health plans (like an HMO or PPO) approved by Medicare and offered by private companies. These plans are part of Medicare and are sometimes called “Part C” or “MA Plans.” Medicare Advantage Plans provide all your Medicare health coverage (in lieu of Part A and Part B) and Medicare Advantage will typically include Medicare Part D drug coverage. Note: You are still enrolled in Medicare, but Medicare no longer pays you medical bills - the new insurer (whoever you choose) is responsible for all medical cost once you are enrolled in their plan.
What’s the difference between Medicare Advantage and a Medicare Supplement a.k.a. Medigap plan?
While a Medigap plan fills the coverage gap in Original Medicare, and is used in conjunction with Original Medicare (Part A and Part B), Medicare Advantage plans replace your Medicare Parts A and B. These (Medicare Advantage) plans pay all of your Health care expenses (Less any co-pay, deductible, or co-insurance) whereas Medigap plans pay only what is left after Medicare pays their portion. You must be enrolled in Medicare Part A and be eligible for Medicare Part B to enroll in a Medicare Advantage plan.
Types of Medicare Advantage Plans
· Health Maintenance Organization (HMO) Plans
· Preferred Provider Organization (PPO) Plans
· Private Fee-for-Service (PFFS) Plans
· Special Needs Plans (SNPs)
There are other less common types of Medicare Advantage Plans that may be available:
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HMO Point of Service (HMOPOS) Plans: An HMO Plan that may allow you to get some services out-of-network for a higher cost.
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Medical Savings Account (MSA) Plans: A plan that combines a high deductible health plan with a bank account. Medicare deposits money into the account (usually less than the deductible). You can use the money to pay for your health care services during the year.
For More info on Medicare Advantage Plans and how they work fo to Section on Medicare Part C - Medicare Advantage Plans
Source: (CMS) Centers for Medicare & Medicaid Services