The confusing part about Medicare Advantage is that client’s often think if they have a Medicare Advantage plan, that they no longer have Medicare.
That is false!
Parts A and B are required to enroll in Medicare Advantage.
The difference is that once you are enrolled in Medicare Advantage, the private insurance company becomes the primary payor instead of the Medicare program and assumes the liability of paying the Part A and Part B covered services. This was a way for Medicare to cut spending and transfer the patient liability to the private insurance companies. This transfer of liability is why you see some plans offering additional benefits such as dental, vision, hearing and wellness. It’s the private insurance companies best interest to keep their policy holders healthy in order maintain acceptable loss ratios.
Why do people choose Medicare Advantage?
- Covers Part A and Part B deductibles
- Carries little to no premiums (as of 2020)
- Offers additional services such as hearing aids, wellness discounts and limited dental work.
- Some plans include prescription drug coverage, reducing the out of pocket monthly premium costs.
Using Part C is one way you can limit your risk of the 20% liability of original Medicare.