Finding Affordable Medicare Advantage Plans

Medicare Advantage is a private insurance company that provides Medicare Part A and Part B benefits. Medicare Advantage plans may be appealing because they have an annual out-of-pocket limit. On the contrary, Original Medicare (Parts A and B) has no limit on how much you can spend out of pocket in a year. Medicare Advantage plans may also be appealing because they frequently provide additional benefits that Original Medicare does not, such as prescription drugs, routine vision, hearing, and dental care. Here are some things to think about when looking for a low-cost Medicare Advantage plan.

Costs of low-cost Medicare Advantage plans vary.

The premium is the first cost to consider when looking for a low-cost Medicare Advantage plan. The premium is the monthly fee for the plan, regardless of which services you use. Your annual premium can be calculated by multiplying your monthly premium by 12. If your monthly premium is $55, your annual premium will be $660. Some Medicare Advantage plans have monthly premiums of zero dollars.

The deductibles are a second cost to consider when looking for a low-cost Medicare Advantage plan. Some plans include medical deductibles, while others include prescription drug deductibles. A deductible is the amount you must pay before your insurance coverage kicks in. Some Medicare Advantage plans have deductibles of zero dollars.

Your copayment or coinsurance is a third cost to consider. Copayments may be required for doctor visits, emergency room visits, ambulance services, outpatient surgery, urgently needed services, skilled nursing facility care, prescription drugs, and other services. A copayment is a fixed dollar amount, such as $15, whereas coinsurance is a percentage, such as 20%.

The out-of-pocket maximum is a final cost to consider when looking for a low-cost Medicare Advantage plan. This is especially important if you believe you will reach this limit. While Medicare establishes the out-of-pocket maximum, it can vary by thousands of dollars between plans.

When deciding on a low-cost Medicare Advantage plan, keep all of these cost factors in mind. Consider the following comparison of hypothetical Plans 1 and 2.

If you choose Plan 1, you will save $840 per year on premiums. However, with Plan 2, you will have all of your covered costs paid for $2,000 sooner than with Plan 1. Plan 2 is actually a lower cost plan if you reach the out-of-pocket maximum, despite having a higher premium.

Other factors to consider when searching for a low-cost Medicare Advantage plan

You may be required to pay the following premiums if you have Medicare Advantage:

• Monthly payment to the company from which you purchased your Medicare Advantage plan

• Premium Part B

• If you do not qualify for premium-free Medicare Part A, you must pay the Medicare Part A premium

Medicare Advantage protection:

• At a bare minimum, all Medicare Advantage plans must cover what Original Medicare does.

• Some plans go above and beyond what Original Medicare provides.

• Some plans provide only the same benefits as Original Medicare and nothing more.

Hearing aids, for example, are not typically covered by Original Medicare. Some low-cost Medicare Advantage plans may pay nothing for hearing aids, while others may pay up to $1,000 every three years. If hearing aids are important to you, check to see if your plan covers them before enrolling.

Do you want to begin your search for low-cost Medicare Advantage plans in your area? Simply enter your zip code at the top of this page.