How Do Medicare Managed Plans Work?
Wondering if you should choose Medigap insurance or a Medicare Managed Plan? There are good reasons to choose either one. The decision is personal.
What are Medicare Managed Plans? They are plans approved by Medicare but run by private companies. Sometimes they are called “Part C” and are considered part of the Federally run Medicare system. When you join one of these programs, you are still a member of Medicare.
What do these plans do for me?
They eliminate the need to buy a Medigap policy. In many of these plans, your costs for prescriptions will be less than the stand-alone drug plans. These plans also often coordinate your care, which can result in savings to you. Some of them offer extra benefits, like eyeglasses.
These managed plans provide all of your Part A and B, hospital and medical coverage, they also often have “networks” of doctors that you must use and/or certain hospitals to go to in order for the service to be covered.
What types of plans does this include?
Plans such as HMO (Health Maintenance Organizations), PPO (Preferred Provider Organization), PFFFS (Private Fee-for-Service) plans, MSA (Medicare Medical Savings Account) Plans and Medicare Special Needs plans.
What exactly are these types of plans?
Health Maintenance Organizations are plans that are available in almost every state, they must cover Part A and B care. Some have other benefits like paying for more hospital days or certain specialists.
Preferred Provider Organizations are a type of Advantage plan in which you end up paying less out of pocket if you use doctors and hospitals that belong to that “network”.
Private Fee-for-Service Plans allow you to go to any Medicare approved doctor or hospital but the Private Fee-for-Service plan decides how much it will pay and what you will end up paying for each service you receive.
Medicare Medical Savings Account Plans contain two parts, a high deductible health plan and a medical savings account. The health plan doesn’t begin to cover costs until you meet the yearly deductible. The savings account allows you to deposit money that you can use to pay for these health care costs.
Medicare Special Needs Plans provide Part A and B coverage and services to people who are in certain situations like having to live in a nursing home. It also may cover you if you are eligible for both Medicare and Medicaid or have chronic or disabling diseases.
Is there an extra cost for these plans?
Yes, each plan has a monthly premium that varies. Your best bet is to do some research into several plans to see which one meets your needs and situation the best.
Related posts
- Do I Need Medigap Insurance if I Join a Managed Care Plan?
- How Does Medicare Coverage Part D Work?
- What Are Some Alternatives To Medigap Plans?
- Which Medicare Advantage Plans Does Humana Offer?
- Do I Need A Medigap Insurance If I Joined A Managed Care Plan?
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