What is the difference between a Medicare Advantage plan and Medicare?

Asked by: Francisca Cummings  |  Last update: October 9, 2023
Score: 4.8/5 (23 votes)

Medicare Advantage is a Medicare-approved plan from a private company that offers an alternative to Original Medicare for your health and drug coverage. These “bundled” plans include Part A, Part B, and usually Part D. In most cases, you can only use doctors who are in the plan's network.

What is the difference between regular Medicare and a Medicare Advantage plan?

Original Medicare covers inpatient hospital and skilled nursing services – Part A - and doctor visits, outpatient services and some preventative care – Part B. Medicare Advantage plans cover all the above (Part A and Part B), and most plans also cover prescription drugs (Part D).

Is Medicare Advantage better or worse?

For many seniors, Medicare Advantage plans can work well. A 2021 study in the Journal of the American Medical Association found that Advantage enrollees often receive more preventive care than those in traditional Medicare. But if you have chronic conditions or significant health needs, you may want to think twice.

Does Medicare pay anything if you have an Advantage plan?

Medicare Advantage Plans must cover all of the services that Original Medicare covers except hospice care. Original Medicare covers hospice care even if you're in a Medicare Advantage Plan. In all types of Medicare Advantage Plans, you're always covered for emergency and urgent care.

Can you go back to Medicare from an Advantage plan?

If you joined a Medicare Advantage Plan during your Initial Enrollment Period, you can change to another Medicare Advantage Plan (with or without drug coverage) or go back to Original Medicare (with or without a drug plan) within the first 3 months you have Medicare Part A & Part B.

Medicare Advantage vs Medicare Supplement Plans (Updated Review and Important Tips)

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Can you have both Medicare and Medicare Advantage?

If you join a Medicare Advantage Plan you'll still have Medicare, but you'll get most of your Part A and Part B coverage from your Medicare Advantage Plan, not Original Medicare. You must use the card from your Medicare Advantage Plan to get your Medicare- covered services.

Why would I choose Medicare Advantage over Original Medicare?

Original Medicare does not include prescription drug coverage. You may choose to purchase a stand-alone prescription drug plan from a private company. Most Medicare Advantage plans include coverage for prescription drugs, although there are also MA plans that cover medical services only.

Why do people choose Medicare Advantage plans?

Under Medicare Advantage, you will get all the services you are eligible for under original Medicare. In addition, some MA plans offer care not covered by the original option. These include some dental, vision and hearing care. Some MA plans also provide coverage for gym memberships.

Why do so many older adults choose Medicare Advantage?

Many Medicare Advantage plans offer additional benefits, such as money toward dental or vision care, which isn't covered by original Medicare. About 1 in 4 people say extra benefits pushed them to choose Medicare Advantage, according to a survey by the Commonwealth Fund, a health care think tank.

Are Medicare Advantage patients healthier?

Historically, Medicare Advantage beneficiaries have been healthier than those in the traditional program, but this seems to be changing: beneficiaries now have similar characteristics and experiences regardless of coverage.

How do I switch back to original Medicare?

If you're already in a Medicare Advantage plan and you want to switch to traditional Medicare, you should contact your current plan to cancel your enrollment and call 1-800-MEDICARE (1-800-633-4227). Note there are specific enrollment periods each year to do this.

What are the rules to have a Medicare Advantage plan?

Who Qualifies for Medicare Advantage? You are eligible for a Medicare Advantage plan if you have Original Medicare (Part A and Part B). Even those on Medicare under 65 due to disability may enroll. You may sign up for a Medicare Advantage policy if you live in your chosen plan's service area.

Is Medicare Advantage more expensive than traditional Medicare?

Medicare Advantage can cost less than Original Medicare. That's because Medicare Advantage plans must have a maximum out-of-pocket limit.

Does a Medicare Advantage plan cover the 20 percent?

Copayment: MA Plans usually charge a copayment (copay) for doctor's visits, instead of the 20% coinsurance you pay under Original Medicare. Keep in mind that MA Plans cannot charge higher copays than Original Medicare for certain care, including chemotherapy, dialysis, and skilled nursing facility (SNF) care.

What are 3 types of Medicare Advantage plans?

Overview of Medicare Advantage Plans
  • Health Maintenance Organizations (HMOs)
  • Preferred Provider Organizations (PPOs)
  • Special Needs Plans (SNPs)

Why people don t like Medicare Advantage plans?

High Out-of-Pocket Costs

One of the primary reasons why Medicare Advantage plans are bad for some is because of their high costs. While these plans may offer lower premiums than traditional Medicare, they often come with additional costs that can quickly add up.

Who is the best candidate for a Medicare Advantage plan?

The Medicare Advantage plan may offer a $0 premium, but the out-of-pocket surprises may not be worth those initial savings if you get sick. “The best candidate for Medicare Advantage is someone who's healthy,” says Mary Ashkar, senior attorney for the Center for Medicare Advocacy.

What percentage of Medicare patients have Medicare Advantage?

In 2022, nearly half of (48%) eligible Medicare beneficiaries – 28.4 million people out of 58.6 million Medicare beneficiaries overall – are enrolled in Medicare Advantage plans.

Is Medicare Advantage good for the elderly?

Medicare Advantage for seniors

The advantage for seniors is more choice and often lower out-of-pocket costs. Most of these plans are health maintenance organizations (HMOs) or preferred provider organizations (PPOs) — which offer significant savings for visiting in-network providers.

Do I have to pay both Medicare Part B and Medicare Advantage?

In addition to your Part B premium, you usually pay a monthly premium for the Medicare Advantage Plan.

How do you qualify to get $144 back from Medicare?

To qualify for the giveback, you must:
  1. Be enrolled in Medicare Parts A and B.
  2. Pay your own premiums (if a state or local program is covering your premiums, you're not eligible).
  3. Live in a service area of a plan that offers a Part B giveback.

Is it hard to switch from Medicare Advantage to Original Medicare?

Again, you do need to contact your plan provider directly to disenroll, but once you do, nothing more is required on your part. Once you contact your Medicare Advantage plan during Annual Enrollment to dis-enroll, your coverage will automatically revert to Original Medicare.

Can you cancel a Medicare Advantage plan at any time?

If you're in a Medicare Advantage plan with or without Part D coverage, you can: Switch to another Medicare Advantage plan with or without Part D coverage, OR. Disenroll from your plan and return to Original Medicare anytime between January 1 – March 31.

How much is Medicare Part B?

Most people pay the standard Part B monthly premium amount ($164.90 in 2023). Social Security will tell you the exact amount you'll pay for Part B in 2023. You pay the standard premium amount if you: Enroll in Part B for the first time in 2023.