Medicare Advantage is one way to receive your Medicare benefits and is offered through a private insurer. These plans are only available if you are already enrolled in both parts of Original Medicare, which are Part A and Part B. Not only will these plans provide the same coverage as Original Medicare, but they may also provide additional benefits, such as vision, dental, prescription drug coverage, and more. 

You may see Medicare Advantage plans advertised as free or with $0 premiums. Let’s examine what free Medicare Advantage plans look like.

Costs of Original Medicare Still Apply

It is true that a Medicare Advantage plan may have a low or no monthly premium. However, even if the plan itself doesn’t have a monthly premium, you will still be responsible for paying your Medicare Part B premium and your Part A premium (if you have one; some receive premium-free Part A). 

You will have to continue making these payments with a Medicare Advantage plan. There are some plans which offer a refund for part or all of your Part B premiums which is certainly attractive to potential participants. 

Because of this, it is very important to examine the cost of using the plan. Every Medicare Advantage plan has its own rules but there are some expenses you can expect to pay with any form of Medicare.

Deductible

Your deductible is the amount you have to pay entirely out of pocket before any coverage is offered. Once this is met, Medicare will start to pay its portion for covered services.

Copayment and Coinsurance

Next, be aware of your copayment and coinsurance costs. Copayment is the flat rate for certain services (like a flat $25 office visit) which you pay. Coinsurance is the percentage (20%-30%) which you pay for covered services. If the cost of your Medicare Advantage plan seems too good to be true, these are the places to look to make sure you aren’t being overcharged. The good news is that every plan has a maximum out-of-pocket limit. Once you have paid a certain amount ($7,550 in 2022) your plan will cover 100% of covered services.

To learn more about the Medicare Advantage plans available to you and the costs you can expect with each plan, give us a call today!