Medicare Advantage

Unlike Original Medicare, which is administered through Medicare (Social Security Administration), Medicare Advantage plans are obtained through private insurance companies. These plans roll Medicare Parts A, B, and D into one policy.

These are managed care plans with restricted lists of permitted providers. Some of these plans are preferred-provider only (PPO), so the choice is wider, but the cost is higher. Medicare Advantage plans may have more, and sometimes less, services than Original Medicare.

These plans also have deductibles and co-payments for most services, including major yearly deductibles for hospitalizations. Therefore, individuals can end up paying more for Medicare Advantage, even though the monthly premium may be less than that for combined Part B and a Medicare Supplement policy under Original Medicare.

These plans may also include Part D, depending on the plan. The lower the premium, the less coverage.

Many insurance companies provide a variety of plans. We recommend a careful comparison of costs, benefits, and access to physicians before choosing one, or opting for Original Medicare.