Advantage Plans to Receive $11.4 Billion

Medicare Advantage plans were put in place to give private insurance plans the chance to provide more benefits than Medicare was providing, many of them do. Some give better and more benefits than others and it can be confusing trying to find out which ones are the best.

The question has come up continually as to whether this is the best use of our dollars, there are probably two different answers. One is that the Medicare Advantage – just like any system has flaws can be improved and can have tighter reigns and more oversight, so that it operates as effectively as it was originally supposed to do on paper. The other answer is maybe. Medicare Advantage is a system that provides a better alternative for many Medicare beneficiaries (better than Medicare itself, and more cost-effective than Medicare supplement plans for healthy people in the long-run). Medicare Advantage works on the basis that private insurance companies are receiving monies from the government, who agreed to subsidize private insurance plans when it gave them the opportunity to provide Medicare Advantage plans in Medicare+Choice and Medicare Modernization legislation. In return, beneficiaries get to choose their benefits.

One of the most important issues, however, is making sure that the individuals who are selling Medicare Advantage actually understand it, and understand Medicare and Medicare Supplements. This is where beneficiaries save or lose money and/or benefits. Some people are best left on their original benefits, perhaps with a few changes, especially if they have more health problems. On the other hand, many people who are healthy and are not in and out of the doctor’s office might do well with the right Medicare Advantage plan. It is critical that the individuals who are setting up coverage for seniors know what they are doing and how to do it so that people will be better off with the plans they are advised to choose.

Medicare Advantage plans do hold costs down for consumers. Medicare supplements do too, but are better for unhealthier people. However, supplement premiums are higher because they don’t get subsidizations. The government is giving $11.4 billion to Medicare Advantage plans. The question is, could single payer plan patterned after Medicare give everyone adequate health care – even those who are not on Medicare but are without healthcare altogether.