If you are approaching the age of 65, you will be eligible for Medicare. At this point, you will have to decide whether to enroll in the traditional Medicare (Parts A and B) or Medicare Advantage (Part C). Although a large number of people sign up for traditional Medicare, there are some good reasons to consider signing up for Medicare Advantage insurance.
There is a limit to out-of-pocket expenses
Often called Maximum Out-of-pocket or MOOP expenses, the Advantage plans have a federally mandated limit while Medicare Parts A and B do not. For this reason, most people enrolling in Parts A and B find out that they need to purchase a supplemental insurance policy to protect themselves from a large medical bill. With a Medicare Part C plan, there is no need for a supplemental insurance policy. Some plans even have lower maximum MOOP expenses than the legal limit.
These plans cover prescription drugs
Traditional Medicare does not cover prescription medications. This is why the federal government created Medicare Part D. You have to enroll in this program, and there are premiums associated with it. But most Medicare Advantage plans cover prescription drugs.
There is more coverage available
There are certain things that traditional Medicare does not cover. Examples of this include such things as dental expenses and eyeglasses. Another notable example is hearing aids, which become important as we age. There are Medicare Advantage policies that cover all of these expenses.
There are more plans available
Original Medicare is run by the federal government, but Medicare Part C plans are sold by the private sector. Although they are regulated by state and federal laws, there are more options available. Most plans have prescription benefits, and all of them have limits on MOOP expenses, but there are various premium levels associated with the plans as well as deductibles and optional coverage.
Medicare Part C is simple
With traditional Medicare, you need Medicare Part A coverage for inpatient care, Medicare Part B for outpatient care, Medicare Part D for your prescription medication, and to top off all of that, you need a Medicare supplemental policy to cover the gap in coverage from Medicare Parts A and B. But a single Medicare Advantage policy can take care of everything.
Medicare Advantage plans are sold by private companies, and the plans available will vary depending upon the state you live in. Ultimately, the choice of one of these plans and original Medicare will depend upon your particular financial situation as well as your health. However, you should take your time to look at these plans because they may better fit your needs.