Medicare is said to have been enacted around five decades ago. Insurance carriers had come up with Medigap or Medicare Supplement Plans. This is to assist people to insure against different cost sharing in which they take responsibility under federal health insurance program exclusively for seniors. Such plans were said to have helped consumers to cover co-insurance and deductibles of Medicare Part A and B and were only the supplemental plans made available. For more information on best Medicare Advantage plans of 2019 click here.
Medicare Advantage Plans
It was in 1997 that Medicare Advantage Plans was created which operate differently and hence is not supplemental plan. Therefore, it will be essential to do some research to know the difference, so as to get hold of the most appropriate plans.
Why Medicare Advantage Plans were created by the Congress?
Such plans came into existence due to various reasons, some of which are given below:
- Firstly, Medigap and Medicare plans were increasing in costs. With time, there was noticed increase in co-insurance and deductibles of Medicare. As these costs are covered by most of the Medigap plans, the monthly premiums also increased.
- Secondly, majority of the Americans were found to rely entirely upon their social security program for retirement income. At times, they realized quite late that only this income will not suffice to meet their living expenses. It was noticed that people of 65+ age years were not able to meet premium of Medigap Plan and Part B. Moreover, with Medicare not covering retain prescription drugs, the seniors had to pay from their own pockets. This meant they had to make tough choices between rent, groceries and healthcare costs. With majority of the seniors not able to get proper health insurance and growing health conditions made the Congress to take some decisions.
- Finally, with Medicare, there always have been some inherent budgeting problems, since an estimation of the amount that will be spent by a beneficiary on annual healthcare cost was not present. Those healthy cost less, while others suffering from serious conditions cost thousands of dollars.
It is then that Medicare+Choice plans were created that later evolved into Medicare Part C and known today commonly as Medicare Advantage Plans. Such plans were found to provide potential solutions to problems that were noted before.
Discussing with the leading healthcare agent can help the person to understand how the right type of plan when selected can do them a lot of good.