Do you know that there are two ways to receive Medicare benefits? You can get them directly from the federal government using the standard Medicare program. Or you can enroll in a private health plan through the Medicare Advantage Plan. Before deciding which option to choose, it’s wise to familiarize yourself with their differences.
The Costs
In terms of costs, the standard Medicare varies according to which Medicare benefits you will be getting. Those who opt for hospital insurance (Part A) are required to pay a deductible. Whereas, those with medical insurance (Part B) will have to pay a monthly premium, as well as an additional premium. Most services often have a coinsurance of 20 percent, and others may have co-payments. You can also get Medigap (supplemental) insurance to offset additional costs.
With Medical Advantage Plans, on the other hand, you will be charged with medical insurance premiums and an additional premium. The good news is it often has cheaper co-payments.
What They Cover
By law, Medicare Advantage Plans must cover what a standard Medicare covers. Furthermore, it must also offer bigger coverage than the standard Medicare. That is why it often offers additional benefits for dental and vision care or other preventative services that aren’t available in standard Medicare.
Medicine Coverage
Medicare Advantage Plans are often packaged with Part D (Medicine) coverage. This isn’t an option for standard Medicare plans, however. For them to receive medicine coverage, they have to purchase it separately from a private insurance company.
Networks
Medicare Advantage Plans work like other private health insurance policies. They can be purchased as private fee-for-service, PPOs, HMOs, and more. You are limited to a network of providers and pharmacies.
Meanwhile, standard Medicare doesn’t have a network. If you go to a doctor who accepts Medicare, then you’ll simply have to pay 20% coinsurance. If you go to a non-participating doctor, you’ll be charged more (but your Medicare will pay part of the bill).
If you are still confused as to which you should buy, our agents may be able to help you with this important decision and there’s no additional costs to you. Here at Medicare Savings Advisors we’re dedicated to helping you find the best Medicare plan that suits your needs. You may call us today at 410-852-9100 or visit us now for free quotes.