What is a Medicare Advantage plan and why should I buy it?
A Medicare Advantage (MA) plan is a type of health plan offered by a private company that contracts with Medicare to provide you with all your Medicare Parts A and B benefits. MA plans include health maintenance organizations, preferred provider organizations, private fee-for-service plans, and Special Needs Plans.
Advantages of MA plans
Most MA plans have low monthly premiums. Some may not charge any monthly premium.
Some plans may provide more benefits than are covered under Original Medicare.
You generally can enroll regardless of your health history, unless you have End-Stage Renal Disease (kidney failure).
Disadvantages of MA plans
MA plans are annual contracts. Plans may decide not to negotiate or renew their contracts.
Plans may change benefits, increase premiums and increase copayments at the start of each year.
You may have higher annual out-of-pocket expenses than under Original Medicare with supplemental insurance coverage.
Your current doctors or hospitals may not be network providers or may not agree to accept the plan’s payment terms.
In most cases, you cannot keep your stand-alone Medicare Part D plan and the Medicare Advantage plan.