Amazing as it sounds, there are over ten million people enrolled in a Medicare Advantage plan, remarks Alan Weinstock an insurance broker at www.MedicareSupplementPlans.com. That’s one in four people on Medicare.
And these plans can have a distinct advantage for Medicare beneficiaries or so says a February 2010 data spotlight released by the Henry J. Kaiser Family Foundation which looks at the benefits and cost-sharing for Medicare Advantage plans.
Benefits of Medicare Advantage Plans
Medicare Advantage plans include health maintenance organizations (HMOs), Regional Preferred Provider Organizations (RPPOs) and Private Fee-for-Service (PFFS) plans. While these plans are required to provide all the benefits covered under Medicare, each insurance carrier has the flexibility to modify the plan design.
In addition, Medicare Advantage plans are required to use extra payments (such as rebates) to provide extra benefits to enrollees. These can come in the form of lower premiums, reduced cost-sharing or other benefits.
There has been an increase in the number of beneficiaries enrolling in Medicare Advantage plans because of they offer low premiums, extra benefits and cost-sharing advantages. Plus they also provide free preventive services and limit beneficiaries’ out-of-pocket expenses.
Cost-Sharing Advantages of Medicare Advantage Plans
Cost sharing for Medicare-covered services varies among plans. For instance, they typically use fixed dollar copayments rather than coinsurance for Medicare-covered services. Plus there are limits on beneficiaries’ out-of-pocket expenditures and nearly 80 percent of Medicare Advantage plans in 2010 have limits on out-of-pocket spending for Medicare Part A as well as Medicare Part B services. Traditional Medicare doesn’t have these out-of-pocket limits.
The number of Medicare Advantage plans with a limit on out-of-pocket spending has increased from 2008 to 2010 (up from 66 percent to 79 percent), while almost half of Medicare Advantage plans limit out-of-pocket spending to $3,400.
The fact is that there is a wide variation in the benefits and cost-sharing that seniors may find depending on the Medicare Advantage plan they choose, notes Weinstock. It’s also important to keep in mind that Medicare Advantage plans are not necessarily right for everyone. For some, a Medicare supplement insurance plan or Medigap plan might be a better fit.
Medicare supplement insurance is sold by private insurance companies and can help pay for some of the health care costs or gaps that a Medicare policy doesn’t cover. This includes things like copayments, coinsurance and deductibles. Some policies even offer coverage for services such as traveling outside the country.
For older Americans looking for just the right Medicare supplement insurance, a qualified, independent advisor can assist in reviewing alternatives and in finding the right plan. That means finding a good insurance broker like one of the people at http://www.MedicareSupplementPlans.com, a site where seniors have the opportunity to compare rates, plans and benefits for Medicare supplement insurance from several prominent insurance companies.