Medicare vs Medicare Advantage 2020
Medicare Advantage is a valuable plan for most seniors. This is a cost-effective healthcare solution that can replace other plans. It can also act as a supplement to other healthcare coverage. In this post, let us compare Medicare vs Medicare Advantage 2020 and find out how these two plans stack up to one another.
How They Provide Coverage
The Original Medicare plan handles most of your inpatient and outpatient expenses. It also takes care of Medicare Parts A and B. These items cover doctor and hospital services. However, this plan has some deductibles that you need to pay on your own. It also comes with copayments, coinsurance and excess charges that you have to handle on your own. But the basic plan can take care of hospital stays, nursing care, medical tests and many more.
Medicare Advantage will ease the burden by handling those out-of-pocket expenses but it can add more coverage. Although MA does not handle the hospice care, it includes the rest of the coverage from the Original Medicare. It joins coverage for urgently needed healthcare treatment, as well as emergency medical services.
You can find Medicare Advantage plans that can do more. They include Medicare Part D or drug plan. Some plans will cover your hearing, vision, and general wellness expenses.
Medicare decides for the locked-in coverage of the Original Medicare. When you obtain a Medicare Advantage plan, you will have guaranteed basic coverage. And you get to enjoy additional benefits that are part of a plan. Even if you choose a basic, standard Advantage policy, it can still provide more coverage than Original Medicare.
But Medicare Advantage works depending on the network coverage. With Initial Medicare plans, you can go to a healthcare facility to receive treatment and you will be covered, as long as the facility accepts Medicare.
However, it does not work that way with MA. You can only get full coverage from your policy if you go to a medical facility that is part of your insurer’s network. If you choose to go outside of your insurer’s network, then you are not guaranteed to receive full coverage. Off the network will not give you coverage. However, if you have Advantage PPO option, you can get partial coverage when you receive treatment outside the network.
The Cost of These Plans
Medicare and MA plans have different coverage. Thus, you might assume that their prices have a huge difference.
Original Medicare has a few expenses that you need to handle. You also have to pay for the premium of Part A. However, you can purchase a plan that comes with $0 premium. But it depends on the number of years you paid Medical taxes.
On top of Part A premium, you also need to handle the Part B portion of Original Medicare. Both parts have deductibles and copayments.
As you compare Medicare vs Medicare Advantage 2020, you will have to consider the price that could impact the overall value of the plan. Because of how much coverage it offers, Advantage plans could cost more than the Original Medicare. Even though you could find a plan with no premium, you need to pay a lot of out-of-pocket expenses. If you wish to lower your deductible, you need a higher MA premium.
To know the prices of each plan or how these plans differ in prices, you may use our free tool. You should remember though that the rates change all the time. In that case, you need to compare prices before you choose a plan. Medicare sets the pricing for Original Medicare but private insurers are the ones to decide the cost for their Medicare Advantage plans. In other words, Original Medicare has standard rates while MA has different rates depending on the insurer and your location.
After knowing the pricing of these plans, you must be aware of how to register in these plans. When to sign up for them will be quite different. Keep in mind that one is coming from the government while the other is available through private insurance companies.
For the basic Medicare, you will be registered automatically in the plan if you are 65 years old and have paid the Medicare taxes. If you are not enrolled automatically, you may call Medicare to help you sign up manually. But do not wait for too long before you sign up as the plan may cost you a lot.
Medicare Advantage, on the other hand, has a different enrollment period. Before you can enroll, though, you need to have an active Medicare plan. You should also be 65 years or older and a US citizen. Then, you should be living in the coverage area of the insurance provider that you want to purchase the plan from. You may have an ideal insurance company but you do not reside in a place where the network has coverage. If this is your case, you cannot sign up for its plan.
When choosing a healthcare plan, you must examine all the options available. Keep in mind that not all plans apply to your situation. If you have an active Medicare but it does not provide sufficient coverage, you should consider studying the options of Medicare Advantage. Seniors should compare Medicare vs Medicare Advantage for 2020. In this way, they will get to know all of their options, study them before they make a decision. You may use our website to see how the rates of one plan from one insurer compare to other insurers’ rates. Our tool is free so you can use it as often as you want.
Compare 2020 Medicare Advantage Plans