If you are nearing the age of 65 years or is already 65 you must be aware of Original Medicare, the health benefits that you get from Government. Do you know about Medicare Advantage plans?
Started in the year 1995 the medical advantage plans were created by the Federal government so that they can give people more options in relation to health care benefits. These plans are sold by private health insurance companies while federal government regulates it.
How Original Medicare and Medicare Advantage plans are same?
All Medicare plans must provide the benefits that are include in the Part A and part B of Original Medicare. Which means if original Medicare provides a certain level of hospitalization expenses that will be provide by advantage plans too.
When there are similarities between the two there are many advantages of the Advantage Plans over original Medicare plans. That is why there is demand for MA plans.
Original Medicare vs. Medicare Advantage
While Original Medicare will cover the medical as well as the hospital costs only a good MA plan will cover vision, dental, hearing and even prescription drugs too apart from providing the medical and hospitalization costs.
Regarding the cost that is provided by the plans, there is no cap on the amount that you pay out of pocket. However, in case of MA plans there is a maximum amount for out of pocket costs. After you hit the maximum dollar amount for any particular year, the plan that covers you will pay 100%of the cost for the services that are covered.
You will not get any coverage under Original Medicare if you are travelling outside your country, not even in case of emergency. On the other hand if your plan permits then you will get coverage even while travelling outside the country for a maximum limit.
Then in case of original Medicare there is concept of co-insurance. That is you have to pay a percentage of the total medical cost, say 20%. In case of Medicare Supplement Plans 2018 there is concept of copay. This means you have to pay a fixed amount irrespective of the total costs. In case your copay is $15 then you have to pay that only irrespective of the fact that Doctors fees is $40 or $100. In case of original Medicare you have to bear percentage and that will vary when the costs are high.