Medicare Advantage plans have become extremely popular in the last several years. More than 22 million people currently have Advantage plans with that number expected to grow. But what exactly are they and how are they different from Medicare supplement plans? Medicare Advantage plans are health insurance plans run by private companies with guidelines and oversight from the Centers for Medicare and Medicaid Services (CMS). Some insurance companies are given contracts from CMS to provide coverage to Medicare members. This coverage must be as good or better than what you would get with had Original Medicare.
Medicare Advantage plans, sometimes referred to as Part C or MA plans, are a different way to receive your Part A and Part B coverage. While on an MA plan you would not use your Medicare card. Instead, you would use your Advantage plan card when you have services performed. Keep your Medicare card in a safe place because you may need it if you decide to go back to Original Medicare.
Medicare Advantage plans have several key features:
- In most cases, MA plans include Part D (prescription drug) coverage.
- Your plan may have a network of providers and you will need to stay within that network when you receive care.
- Many (but not all) MA plans have a monthly premium. There may also be deductibles, copays, and coinsurance associated with your plan.
- You can enroll, change or leave your MA plan only during certain times of the year.
The most common types of MA plans include: Health Maintenance Organization (HMO), Preferred Provider Organization (PPO), Private Fee for Service (PFFS), and Special Needs Plans (SNPs). Not all types of plans are available in all areas. Medicare Advantage plans have specific coverage areas that can vary by county or, in some cases, zip code.
