The Pros and Cons of Medicare Advantage Plans
With the Annual Election Period (AEP) coming up, you might be a person who wants to look into other health plans available, whether that’s to lower cost or find better benefits. Some of you might not even know what a Medicare Advantage (MA) plan is. Today, in honor of the AEP being only a month away, we will look at Medicare Advantage plans and compare the pros and cons.
MA Plans and Benefits
Medicare Advantage is also known as Medicare Part C. Medicare Advantage plans offer an alternative way to receive your Medicare benefits through a private, Medicare-approved insurance company, while providing both Part A and B coverage. MA plans come with much variety and many benefits vary based on the private insurance company you sign up with. MA plans also can come with drug coverage that helps with cost and ability to receive certain drugs not available to just anyone. It is important to note that plans can choose not to cover the costs of services that aren’t medically necessary under Medicare.
The benefits found in an MA plan can cover vision, dental, and hearing, as well as fitness programs to help stay in shape. MA plans typically cost less than other plans due to premiums sometimes costing as little as $0 dollars. MA plans do have out-of-pocket costs which give you a limit that you’ll pay for covered services in a year. Medicare Advantage plans also offer PPO and HMO types, which give you more access to doctors outside of the network for a higher cost and lower cost to stay inside the network.
Cons of MA
Medicare Advantage plans do have their downsides, such as fewer choices in-network. Another challenge is that you can only switch plans at certain times during the year so if you need to change your coverage you have to wait for an enrollment period. Just because premiums are lowered, it’s important to know that out-of-pocket costs might cause your plan to become more expensive. Finally, since MA plans change year to year, your current coverage might be different or the company could pull out of the area, leaving you to find a new plan.
At the end of the day, regardless of the pros and cons, MA plans can offer you a variety of benefits compared to your normal plan. If you have questions on different plans or how your insurance might change next month contact your agent! If you are looking for something different, don’t hesitate to call Empower Brokerage with your questions.