What is a Medicare Advantage?

Medicare Advantage, also known as Medicare Part C, is a plan provided by private insurance companies with the help of subsidies provided by the government so that the insurance company can design network based plans at a low or zero premium.

These plans are normally designed with copays and coinsurance throughout the plan as a form of cost sharing that the client would assume when joining one of these plans. Most plans will include additional benefits at no additional cost to you such as dental, vision, and/or hearing benefits as an example.

Let's take a closer look at Medicare Advantage Plans.

Medicare Advantage Upside:

It’s convenient to have a single plan for everything
The plan covers everything traditional Medicare covers (hospital insurance and medical insurance) as well as emergency and urgent care.
Most plans also include prescription drug coverage
Your eligibility isn’t affected by your health or financial status
Premiums are low

Medicare Advantage Down Side:

You’re restricted to certain doctors in your network (unless it’s an emergency)
Plan premiums can change from year to year
Difficult to switch to Medigap later on
Plan benefits can change from year to year
You’re subject to high deductibles and co-pays that tend to range from $3,400-$11,000