Medicare Advantage was created by the 2003 Medicare Modernization Act. In short, Medicare Advantage was designed to enable private carriers such as Anthem Blue Cross, United HealthCare, Humana and others to create health-care plans designed for people using Original Medicare. The plans would be uniform to cover what Original Medicare is offering along with enhanced benefits such as preventive care , dental care, vision and even hearing.Have a look at Insurance SoluTNS-Medicare for more info on this.
These Medicare Advantage Plans come with supplementary support for seniors to help minimize overall medical expenses. Medicare Advantage is about 17 per cent more than Original Medicare’s 80 per cent subsidy.
To qualify for Medicare Advantage Plans the requirements listed below must be met:
Should have Original Medicine Part A
Continue to pay for Initial Medicines Part B
Must stay in a service area of the program
Can’t have an End Stage Renal Disease when registering
Let us say you are 68 years old and you need a Hip Replacement to help you understand the difference. You’ve paid $68,000 in medical expenses since the initial doctor appointment, the specialist appointment, the surgery and approximately 6 months of recovery.
Medicare would pay $54,400 or 80 per cent
You are responsible for the $13,600 or 20 percent of your pocket outstanding
So, how do you plan on spending the $13,600? Especially if you only have Original Medicare, that is a huge expense for most. If you’re lucky enough to get an inexpensive Medicare replacement this may not be a major problem. Yet paying for a supplement is not an option on a fixed income for millions of Americans. This is one of the reasons for there being the Medicare Advantage Program.
Advantage under Medicare:
Original Medicare is 80%, or $54,400
Another 17% (approximately) or $11,500 Medicare Advantage
Your total pocket spending is roughly $2100
I ‘m sure you ‘re thinking, Medicare Advantage will save my medical expenses a lot of money. Sign Up on Me! Well, it’s important to understand the various types of Plan Networks before you sign. This is where seniors seem to make a mistake, only buying a price-based Advantage Package. If you opt for the wrong network, you’ll spend more money on medical services.