What is Medicare Advantage?
Medicare Advantage plans are offered by private insurance companies approved by Medicare. Medicare Advantage provides all of your Part A (hospital insurance) and Part B (medical insurance) coverage. Some Medicare Advantage plans also offer extra coverage such as vision, hearing, dental, and/or health and wellness programs. Most Medicare Advantage plans also include Part D (prescription drug) coverage.
Is Medicare Advantage new?
The concept has been around since the 1970’s, but plans were renamed Medicare Advantage plans in 2003. As of 2019, there were 22.4 million people enrolled in Medicare Advantage plans, accounting for about 38% of all Medicare Beneficiaries.
Is Medicare Advantage going to cost me more money?
You will always have to pay the Part B premium – whether you are on Traditional Medicare, adding Supplemental Coverage, or choosing Medicare Advantage. If you are lower-income and qualify for Forward, some of the Part B premium may be paid for by the state. Consider having a needs assessment done by an insurance agent to help you determine what type of plan will work best for you.
How is this paid for?
The Medicare Part B premium is always deducted from the monthly check from Social Security. When you enroll in a Supplemental Plan, Medicare Advantage Plan or Part D plan – you can pay for your premiums in one of three ways:
- Have it deducted from your monthly Social Security check
- Auto-pay through a checking or savings account
- Receive direct, monthly billing