It was with the 2003 Medicare Modernization Act that Medicare Advantage had been created. Medicare Advantage Plans has been designed to permit private carriers such as Humana, United Healthcare, Anthem Blue Cross and others to develop healthcare plans. These are designed for those individuals availing Original Medicare. The plans are to be uninformed for covering what is being provided by Medicare combined with improved benefits like hearing, vision, dental and preventive care.
Such Medicare Advantage Plans for 2019 offers seniors with additional support to reduce overall medical costs. Advantage is considered to be about 17% subsidy besides the 80% payment made by Original Medicare.
It is necessary to meet the given below requirements for being legible to avail Medicare Advantage Plans:
- Need to have Original Medicare Part A
- Need to continue paying Original Medicare Part B
- Need to reside within the plan service area
- Not suffer from End Stage Renal Disease during enrollment time
For understanding the difference, the person is to be assumed to be of 68 years old and require Hip replacement. After initial visit to the physician, the specialist visit as well as surgery including rehabilitation for six months, the medical bills have surged immensely.
Under Original Medicare
- The person is responsible to pay the outstanding 20% out of pocket expense.
- While Medicare is likely to pay 80% of the expenses
How to plan coverage the expenses?
By having only Original Medicare, the expense is huge. It might not be an issue, if only having affordable Medicare Supplement plan. But Americans in millions making payment for supplement is not found to be an option for those on fixed income. Hence, there exists Medicare Advantage Plans.
Under Medicare Advantage Plans
- 80% of expenses will be covered by Original Medicare
- Another 17% to be covered by Medicare Advantage
- Total out of pocket costs will be less.
Those assuming Advantage plans can save a good amount of money on their medical bills should not make haste when selecting a plan. Rather, they should take out sufficient time to understand the different Plan network types. It is here that majority of the seniors are found to make mistakes, as they tend to buy an Advantage plan making price the priority for selection. Selecting the wrong network will only mean having to spend lots of money to avail crucial medical services.