3 Reasons Why Joining a Medicare Advantage Plan Could Be Worth It

As of 2019, more than 20 million people have already decided that Medicare Advantage plans are worth it.1 So how do you know if a Medicare Advantage plan is a good fit for you?

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Should you get a Medicare Advantage plan?

Medicare Advantage plans (Medicare Part C) have soared in popularity in recent years, with more than one out of every three Medicare beneficiaries being enrolled in such a plan in 2019.

There’s plenty of reasons why these plans may offer you a better value than Original Medicare (Medicare Part A and Part B).

Whether or not a specific Medicare Advantage plan is a good fit for you will be determined by your own unique health coverage needs. Depending on where you live, you may be able to find a $0 premium Medicare Advantage plan that offers additional benefits you can’t find in Original Medicare coverage.

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In this guide, we’ll detail three reasons why a Medicare Advantage plan could meet your unique coverage needs and help you save money on your health care costs.

1.) Most Medicare Advantage plans offer extra benefits that can help lower your overall health care costs

In addition to providing the same benefits as Medicare Part A and Part B, many Medicare Advantage plans include additional benefits that are not found in Original Medicare, such as:

Not all benefits are available with all plans, so be sure to check with your plan provider for coverage details.

To decide if Medicare Advantage is better than Original Medicare, let’s consider the following example:

  • Joe is enrolled in Original Medicare and wants prescription medication coverage. Without a Medicare Advantage plan that includes drug coverage, Joe could purchase a Medicare Part D prescription drug plan or pay for his drugs out of pocket. The average premium for a Part D plan in 2019 is $41 per month.2

  • Joe purchases a standalone dental plan, because Original Medicare doesn’t cover routine dental care. According to the American Dental Association, the average monthly premium for a family stand-alone dental plan in 2015 was close to $32.3

  • Joe needs to purchase a standalone vision plan to help pay for his glasses, contact lenses and eye exams. An individual vision insurance plan could cost around $20 per month, as of 2016.4

  • Joe pays the standard Medicare Part B premium, which is $135.50 per month in 2019.

Let’s take a look at the average monthly premium costs Joe might pay for his health insurance coverage:

Medicare Part B premium

$135.50

Medicare Part D premium

$41

Dental plan premium

$32

Vision plan premium

$20

Total

$228.50 per month

Now let’s consider Susan, who has a Medicare Advantage plan that offers dental, vision and prescription drug coverage.

  • Susan pays the average Medicare Advantage plan premium in 2019, which is just $28 per month. She also pays her monthly Part B premium.

  • Depending on her Medicare Advantage plan, Susan may have copayments and coinsurance costs for dental and vision care. For the sake of this example, we are excluding copayments and coinsurance amounts for Susan and for Joe.

Medicare Part B premium

$135.50

Medicare Advantage premium

$28

Total

$263.50 per month

In this example, Susan could pay $65 less in premiums than Joe per month because of the coverage offered by her Medicare Advantage plan. If she enrolled in a $0 premium Medicare Advantage plan, her savings could potentially be even greater.

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2.) Medicare Advantage plans have an out-of-pocket spending limit

Medicare Advantage plans are required to include an out-of-pocket spending limit of no more than $6,700 per year in 2019 (and many plans have spending limits even lower than that).5

A Medicare Advantage beneficiary who reaches that limit in qualified out-of-pocket spending during the year will have all of their covered services paid for in full by their plan for the remainder of the year.  

There is no out-of-pocket spending limit for Original Medicare. Beneficiaries could be responsible for potentially significant copayment and coinsurance costs throughout the year.

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3.) Many Medicare Advantage plans offer benefits that can help you live healthier

Many Medicare Advantage plans offer additional benefits not covered by Original Medicare that are intended to help you live a happier, healthier and more independent life.

If these benefits fit into your coverage needs, a Medicare Advantage plan could potentially be worth it for you.

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Compare Medicare Advantage plans in your area

Your health coverage choices will likely be based on some primary considerations, such as:

  • The benefits and coverage you want
  • Your budget
  • The availability of plans in your area
  • Your eligibility for available plans

Curious about whether a Medicare Advantage plan might be worth it for you? You can compare plans that may be available in your area for free online or by calling to speak with a licensed insurance agent.

 

Explore Medicare Advantage plan benefits in your area

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Or call TTY Users: 711 to speak with a licensed insurance agent. We accept calls 24/7!