Medicare Advantage Plans: What You Need To Know

Medicare Advantage plans are very popular and are a wonderful way to combine three traditional Medicare policies and even add an extra coverage without purchasing a separate policy.  However, be extremely careful when choosing this type of policy.   As with any insurance plan, there are advantages and disadvantages to these particular combined plans.

By definition, Medicare Advantage Plans are a combined Medicare policy that will take the place of traditional Medicare Part A and B and often Medicare Part D.  These plans are offered by a private insurance company that is approved by Medicare, and have a set monthly premium.  Medicare Advantage plans are not supplemental coverage to traditional Medicare.

Medicare Advantage Plans would cover the traditional healthcare cost that are usually covered by traditional Medicare to your doctors, hospitals, and pharmacy.  In many cases you may also purchase additional coverage to include vision, dental, and hearing.  However, keep in mind that additional coverage equals additional premiums. 

There are a few disadvantages to this type of plan.  Here are a few questions you should consider before choosing a policy: 

·    Are you required to choose a physician that accepts, and participates, in Medicare Advantage Plans?

·    Are you required to have referrals to specialists, outpatient or radiology services?

·    Does the policy have a flat copay for physician services, or is there a deductible and coinsurance?
·    What does the prescription policy cover?  Is there a mail-order supply company offered?

·    Am I locked into the policy for a specific amount of time before I can change back to traditional Medicare or switch to a different policy?

·    Am I purchasing this policy from a reputable company with actual patient reviews of their product?

·    Is there a limit on how much this policy will pay out in one year?

There are many more questions that need to be considered before you make such an important decision for your healthcare needs.  The point of this blog is to get you thinking about your current healthcare situation, policy, as well as your future needs.  Take time, ask questions, and get multiple quotes for coverage.