Medicare Advantage plans, sometimes called “Part C” or “MA Plans,” are offered by private insurance companies that are approved by Medicare. Medicare pays these companies to cover your benefits. A Medicare Advantage Plan is the equivalent of Original Medicare, except it is administered by a private company.

A Medicare Advantage Plan will provide all of your Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance) coverage.


WHAT TYPES OF MEDICARE ADVANTAGE PLANS ARE THERE?

There are six main types of Medicare Advantage Plans:

  1. Health Maintenance Organization plans (HMOs)
  2. Preferred Provider Organization plans (PPOs)
  3. Private Fee-for-Service plans (PFFS)
  4. Special Needs plans (SNPS)
  5. HMO Point-of-Service plans (HMOPOS)
  6. Medical Savings Account plans (MSA)

HMOs and PPOs are the most popular choices.


WITH SO MANY BENEFITS TO A PPO, THERE ARE COSTS

  • Higher costs. Because of the sheer number of choices when it comes to your healthcare, you can expect for higher out-of-pocket costs associated with these plans.

  • Higher premiums. With a PPO, your monthly premiums will be higher, and your copays for office visits will cost more.

  • Annual deductible. With a PPO, there is an annual deductible that must be met.

HOW CAN I REDUCE COSTS OF MY PPO?

To help reduce the costs of your PPO, choose in-network providers, doctors, and other healthcare professionals who are a part of your PPO network. This will save you money.