Beware of the Pitfalls Of Medicare Advantage Plans?

The retiree health care expenses are taking huge bites out of the income of seniors. Therefore, it is no surprise that Medicare Advantage plans are now booming in popularity being a much lower cost. These MA plans that offer inclusive coverage in a designated group of providers, now comprises over 30% of the Medicare market. This is versus the 70% for the common Medicare. Should you avail these plans too? One thing that I could advise you to do is to take a ‘buyer beware’ approach. Medicare Advantage plans must be understood well and you should look at it seriously, as you might save money without even sacrificing your own insurance protection. However, there are several pitfalls of Medicare Advantage plans, so you should look at the fine print before you even sign up for one.

Retiree Health Care Expenses

Let us first discuss about the retiree health care expenses. According to a recent study, the average 66-year old couple is likely to spend about 60% of their own Social Security income on their medical bills. This number is expected to rise for the younger people. The health care tab for a common 45-year old couple may amount to 116% of their lifetime Social Security benefits.

All of these forecasts suppose that your coverage might consist of the traditional Medicare. This includes hospital insurance (Medicare Part A) and doctors, medical equipment, and outpatient (Medicare Part B), Drugs (Medicare Part D), as well as a supplementary policy or the so-called Medigap, in order to seal coverage holes.

The overall cost for this customary coverage may run approximately $300 per month. This include the premium plan that most individuals pay for Part B, which costs about $170.10 per month; as well as possibly $12 per month for the Part D plan. Even though the rates may vary by coverage features and locale. Plus, include an approximately $125.00 per month for an inclusive Medigap all-inclusive policy (again, the expenses may vary).

Pitfalls of Medicare Advantage Plans: The Low-Cost Advantage

In contrast, Medicare Advantage plans offer a suggestively cheaper choice, more especially for much healthier seniors –conceivably $0.0 per month for equivalent coverage. These lower costs have allowed the MA plans in capturing about 1/3 of the Medicare market, ever since they’re first launched in 2003.

However, some Medicare Advantage plans have pitfalls. Here are the details:

• Out-of-pocket protection. With the MA plans, you can get coverage for catastrophic medical bills, which is similar to the Medigap policies. Further, the same is true with the drug coverage.
• All in one Medicare. About 90% of Medicare Advantage plans come with a part D plan that gives you thorough Medicare coverage in one package. In contrast, seniors with a Medicare Supplement Plan might need to track paperwork for their Medigap plans and Part D plan.
• No or low premiums. Medicare Advantage plans commonly cost 60% lesser than a Medicare Supplement plan, yet you might even find $0 premium plans. There are some who rebate portion of the Part B premiums to the customers. The regular Medicare Advantage monthly premium cost for a health maintenance organization plan is only $28 per month. That is for individuals who pay premiums –about 60% of the enrollees are in $0 premium plans.

As you may expect, there is a disadvantage to paying the lower premiums for a Medicare Advantage plan. You might lose access to the health care providers you prefer. Most of the Medicare Advantage plans control costs tightly by requiring you in using just the hospitals, doctors, and some other providers, which are in the network of the plan. If you choose to go out of the network, you might pay more or the charges might not cover at all.

The Takeaway

There are individuals who are being tricked to choosing the Medicare Advantage plan that aren’t really suitable for them. All because they don’t have sufficient knowledge about the matter. It is important that you have the right information and knowledge about the best Medicare Advantage plan for you.

To learn more about the most suitable Medicare Advantage plan for you, you might need a professional who will listen to you and make some essential recommendations tailored for your needs. I have been in this industry for over 30 years, so I guarantee you, I can help you will all your Medicare insurance concerns. You can check my website One Source Benefits or call me at 1-877-549-1212!