Medicare Part C (Medicare Advantage)

Medicare Part C was formerly known as Medicare + Choice plans. Now, these plans are called Medicare Advantage plans.

Medicare Advantage plans, usually offer you more benefits than Original Medicare (Parts A and B). A majority of the Medicare Advantage plans provide options for world wide coverage for urgent and emergency care, fixed costs to help you plan your budget, prescription drug benefits, and limits on out-of-pocket expenses.

Medicare Advantage plans are only provided through private health insurance companies that have been approved by Medicare. Also, Medicare Advantage plans are available in most, but not all areas of the United States.

Several Health Care Insurance companies provide a variety of Medicare Advantage plans. These companies include but are not limited to AARP Health Care, Humana Medicare, SecureHorizons Medicare, and eHealthInsurance.

Important Reminder: If you are not satisfied with your current Medicare coverage, you might be eligible to switch your Medicare plans by March 31, 2010.

In order to join a Medicare Advantage Plan, you must already have Medicare Part A and Part B. You will also have to pay your Medicare Part B monthly premium to Medicare. In addition, you might need to pay a monthly premium for the extra benefits that your Medicare Advantage Plan might provide.

Most of these health insurance companies offer a set of basic Medicare Advantage plans that may be associated with networks, like HMOs or plans that offer you more control over choosing your doctor and hospitals, like PPOs and PFFS.

You are able to select a Medicare Advantage plan that best meets your health care needs. In general the following type of plans are offered by the different Medicare Advantage plan providers.

Health Maintenance Organizations (HMO) - These Medicare Advantage plans require that you choose a doctor from a network as your primary physician. You visits to the doctor can be unlimited and if you aren't happy with your primary physician, you can change and select a new doctor from the network at any time. If you need to see a specialist or be admitted to a hospital, your primary care physician will need to provide a referral. For more information about HMOs please visit our Medicare Advantage HMO page.

Preferred Provider Organizations (PPO) - This type of Medicare Advantage plan allows you to select your own doctors, specialists, and hospital. If you select a medical provider within the network, then you might be able to lower your medical expenses. You are able to visit any medical provider in the nation without getting a referral. For more PPO information please visit our Medicare Advantage PPO page.

Private Fee-for-Service Plans (PFFS) - You have a lot of freedom to choose your doctors and medical providers with this Medicare Advantage plan. You have to make sure that your doctor will agree to the payment terms, conditions, and payment rate set forth by the insurance company. The doctors have to agree to these terms every time you visit them, so you need to contact your doctors office prior to each visit.

Medicare Special Needs Plans (SNP) - These types of Medicare Advantage plans are for Medicare benefiicaries that are in need of specialized medical care. They are available for people that have severe, chronic, or disabling medical conditions. Coverage is available for people that receive both Medicare and Medicaid benefits.

Medicare Medical Savings Account Plans (MSA) - This Medicare Advantage plan have two parts. The first part is a high-deductible Medicare Advantage MSA Health Plan. This health plan will not even begin to pay covered costs until you have met the annual deductible, which can vary by plan.

The second part is a Medical Savings Account into which Medicare deposits money that you may use to pay for your health care costs.

Medicare Advantage Plans and Medigap Policies

Be aware that if you do join a Medicare Advantage Plan and you have a Medigap policy, the Medigap policy will not work. This means that your Medigap policy will not pay any copayments, deductibles or any other cost sharing under your Medicare Plan. You might want to consider getting rid of your Medigap policy when you join a Medicare Advantage Plan.