Perfectly, beautifully, wonderfully 100% wrong.
Medicare Advantage plans have to take and serve all applicants regardless of health history or pre-existing conditions. They also add wonderful complimentary services such as health club memberships to keep seniors healthy, active and engaged. At least most of them do, a fine example of the creativity of free market competition.
Dang, my kingdom for some educated debate on this topic.
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So far, you're the only one with any credibility who's said this. I'll look into it.
Ok, so I did a web search and all roads seem to lead to the Medicare.gov site. From there, I could not find the magic page that explained what is better about Medicare Advantage. Since I'm not old enough to qualify and have no family members currently in the system, I'm wont to spend a whole bunch of time trying to determine the 'advantage'. Maybe you can tell me in you own words why it's better.
Not sure what you mean by "better". But, I think it's one excellent option. Here's the short answer, well, as short as possible:
One big misconception about Medicare is "I have Medicare, so I'm covered." Well, you
have coverage, but there are still many gaps. Medicare will pay 80% to Medicare docs, you pay the rest. Plus there is an annual deductible, somewhere around $250. So unfortunately, many seniors who can't afford the deductible just don't go to the doc.
That's where Medicare Supplements come in. They fill most of the gaps in coverage (they're also known as "Medigap" plans) so that when you go to the doc or hospital, you often spend zero, nothing. These are great freakin' plans, but they have two weaknesses: First, they're fairly costly for many seniors, usually $150 and WAY up based on age, geography, etc. Second, they do not include the prescription drug coverage, so that can be
another $30 to $100 a month, plus co-pays, etc. Many seniors simply can't afford this.
So, enter Medicare Advantage.
These things went national on January 1, 2006 as a result of the Medicare Modernization Act of 2003. These are essentially HMO and PPO plans that are subsidized by the government. No deductibles, but they do have co-pays and co-insurance. So, as compared to Medicare Supplements, you do have to "pay as you go". Maybe $20 for a doc visit, more for hospitalization. So you can have a maximum out-of-pocket exposure of a couple thousand dollars annually. BUT their premiums are $0 in some places, $40 to $60 in others. PLUS they
include the prescription drug component and often include other helpful stuff like health club memberships to keep seniors active, healthy and engaged. I could tell you some VERY cool stories about these benefits.
There was a time when Medicare Advantage plans were more expensive than traditional Medicare (although their benefits were
far more robust, you never hear
that part). But now that the insurance companies have adopted the far more cost-controlled PPO and HMO models, costs have come down considerably. And, as I mentioned, pre-existing conditions must be covered (good description here:
Medicare Advantage).
So, bottom line, MA plans are one good option, along with Medicare Supplements. Depends on the individual.
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