Are Medicare Advantage Plans A Better Option?
One of the most important points of sale that Medicare Advantage Plans has is the low cost. The federal government still subsidizes these plans and has a new strategy that makes certain prices more attractive. They are now rated on a five-star scale and a high rating means more federal funds. This, in turn, means that premiums can be low because the insurance company is earning more federal money from the plan.
Medicare Advantage Plans See a decrease in premiums
Medicare Advantage plans are expected to be less expensive in 2012. Is a four percent drop in cost projected, with an average of $ 32 per month? This is quite remarkable considering that some of these policies already cost $ 0 above the price of the Medicare Part B premium.
In 2012, Medicare Part B premiums will increase by only $ 3.50 for most beneficiaries. However, this is the first time in three years that Medicare beneficiaries have had any increase in these premiums.
For beneficiaries who spend enough on direct costs to meet the Part B franchise, there will be some savings. The $ 162 deductible will be reduced to $ 140 in 2012. Beneficiaries do not have to reach the deductible before a long list of preventive health care services is covered. These preventive services are specific to each age group, so living longer can actually entitle you to more covered medical care.
Medicare health plans are expected to see an increase in membership
Currently, only about 25% of people eligible for Medicare receive benefits through one of the Medicare Advantage Plans. However, with the fall in premiums, private insurers expect an increase in enrollment in 2012.
The other big selling point of Medicare Advantage plans is low cost combined with expanded coverage. Plans must provide all traditional Medicare benefits by law, but most plans add additional value. They usually pay benefits for dental services, help with hearing aids and offer some vision care coverage.
In addition, there is another reason to choose an Advantage plan. They offer guaranteed acceptance for all pre-existing health conditions, except end-stage renal disease (ESRD).
With these benefits, it is difficult to understand why more Medicare beneficiaries are not exploring this option. This could offer additional coverage for the same price they are already paying.
Medicare benefit plans vary in availability
Certain areas of the country, such as urban areas, can choose between two dozen MA plans, but there are no Advantage plans available in some parts of the country. If you are lucky enough to have several options where you live, be sure to compare coverage and cost.