Private insurance companies provide Medicare health plans that can combine covered services from Part A, B and D. Medicare Advantage — also known as Medicare Part C — helps pay for inpatient and outpatient care. It also helps cover prescription drugs, vision, hearing and dental costs.
Medicare Advantage includes the following types of plans:Health Maintenance Organization (HMO) – You will need to choose an in-network Primary Care Physician (PCP).
Your PCP is the gatekeeper of your care, and they must refer you to a specialist for the insurance to cover the treatment. You may only seek services from doctors and hospitals in the plan’s network. They will not cover any costs from out-of-network services.
HMO Point of Service (HMOPOS) – These plans are similar to HMOs. However, you can obtain out-of-network services at a higher cost than in-network services.
Preferred Provider Organization (PPO) – You do not need to select a PCP with these plans. Also, you will not need a referral to visit specialists. A PPO may be a good choice if you have a favorite doctor or you live in a rural area with limited in-network options.
Medicare quotes for PPOs are higher since they give you more freedom.
Private Fee-for-Service (PFFS) – The insurance provider determines what it will cover and what you must pay. The health care provider must agree to your plan’s rates. PFFS are similar to Medicare A and B except there is little difference in costs between in-network and out-of-network providers.
Special Needs Plans (SNPs) – You must have a certain disease or disability to sign up for these plans. Medicare Medical Saving Account (MSA) – These plans combine a high-deductible with a saving account. You can set aside untaxed money into your savings account to use for health care expenses.
Have you figured out which Medicare plan is best for you? Next, find out how and which Medicare plan you should consider.