Medicare Advantage Plans is private and public plans run by the federal government. The premise is that a large majority of Americans will have difficulty obtaining traditional private health insurance. Thus, in order to meet this challenge, Medicare offers a way to buy private health insurance through a managed care program. While most will agree that Medicare is still the best choice, there are a number of issues with this plan that should be considered. Here are some of the major issues with Medicare Advantage Plans.
Medical fees and long term costs are a concern for many Americans. For those that need expensive procedures such as hip replacement or knee replacement, Medicare Advantage Plans can be costly. For others, the rising cost of health care means that even with premium savings they still end up with more money out of pocket. Some critics say that other companies are less than honest in their advertising. This is true, but those who believe that the business model needs to change also see it as an opportunity. Instead of asking “what is the secret formula” to attract more people to Medicare Advantage Plans, we should ask, “what are the key principles to this model that should be followed.”
Like every other industry, competition drives up the cost of health care. With the help of government programs, a company may be able to offer the cheapest rate, but they will never satisfy all consumers. Simply because no one wants to pay too much for health insurance, the best route is to give away something for free. Although you won’t get everything you want, you will probably get most of what you need.
Unlike traditional plans, which have an annual limit on the amount of coverage you can purchase, Medicare Advantage Plans only limits the number of plans you can have. Unlike traditional insurance companies, you don’t have to worry about whether or not your spouse’s insurance will go with your plan or not. This type of personal service is part of the reason that so many younger people have started purchasing private health insurance.
Many companies offer financial assistance if you want to buy your own plan. The only difference with Medicare Advantage Plans is that you pay the administrative fee. The premiums, deductibles, and co-pays are all included in the same plan. The difference between Medicare Advantage Plans and traditional health insurance is that the plan doesn’t cover any “excess” coverage. You can still receive treatments such as prescription drugs or medical procedures. This type of health insurance coverage is particularly beneficial for women who have multiple pregnancies and at least one child.
The biggest benefit of having Medicare Advantage Plans is that if you become seriously ill, you don’t have to pay for the treatments until you are well enough to receive them. Once you have been diagnosed and treated, the rest of the costs will be covered. Many plans also include a hospital stay and physical rehabilitation program. The only way to know for sure whether or not you will qualify for these benefits is to talk to a doctor and ask him what they would cover.
Insurance coverage is a huge issue for many people. It is generally true that if you are working, you are not allowed to participate in Medicare Advantage Plans. However, as a non-working retiree you can choose whether or not you want to buy this type of plan. With the aging of the elderly population, a growing number of older Americans will require Medicare coverage. If you are living on a fixed income, there are still ways that you can qualify for a Medicare Advantage Plan.