Know the truth behind the creation of Medicare Advantage Plans

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.

Is there a need to avail supplement plan F?

Among the different Medicare Supplement Plans 2018 made available to the public, it is Plan F that is regarded to be the most popularly purchased. Most insurance companies as well as their agents are known to lay emphasis on this particular plan. But the question that is asked by many is, whether the plan is the best option to be availed or not.

Some guidelines to determine if plan F is right or not

When checking out Medicare Supplement Plans 2018, it is quite essential to know more about plan F and get the details.

  • How its premium fares with low tier plans like G and D: Generally, Plan F is found to be high priced one among all Medicare Supplement Plans 2018, except Plan J. With low tier plans, it is possible to save around $20 to $30 every month. But this might not appear much on monthly basis, however, could add up to a good amount of savings annually.
  • Enjoying low premiums by shelving out small expenses like Part B Medicare deductible: The low tier plans such as G and D are not known to cover Part B Medicare deductible annual amount. This effectively means that the initial amount which is charged on the person annually for Part B Medicare charges (which includes physician services and fees) is likely to be his responsibility. Doing some simple math calculation can help the person to determine if the low plan based premium savings will offset the annual charge or not. If even a small amount is saved on the premium on a monthly basis, in course of the year, the person stands to better financially by availing any of the low tier plans.
  • Is Medicare assignment accepted by hospitals and physicians in the area: Among the three standard Medigap plans providing full coverage on Part B additional charges, Plan F is regarded to be one. Excess Part B charges tends to occur as Medicare assignment (or Medicare amount paid for specific procedures and services) is not accepted by the physician or doctor. But in many areas, physicians and doctors are found to accept assignment. Payment is made to them strictly based on the Medicare prescribed fees or schedule for the offered services or procedures. In case, the physicians in the region that is generally to be used are found to accept assignment, then much weight in benefits will not be found in the decision.

Therefore by going through the above guidelines, it becomes possible to determine the right type of plan to be purchased from the different Medicare Supplement Plans 2018. Check out Medigap Plan guide today.