Medicare Advantage/ Disadvantage
In my personal opinion, I feel there is a need for every product on the market, however, the products should be used in the correct way, for the right individuals.
In most cases, I see the wrong product being promoted to the wrong individuals.
Medicare advantage, in my professional opinion, were built to help those dual eligible for Medicare and Medicaid, or lower income individuals. They usually cost zero dollars and work in connection with Medicaid to cover co-pays and out of pocket expenses.
There are many differences on how Medicare advantage and Medicare supplements operate. Take PPO networks for instance, Advantage plans restrict individuals to PPO networks, which limits the number of physicians and hospitals they get to choose from.
Medicare Supplements allow you to go to any provider that accepts Medicare without referral. Having the option to visit any doctor you wish is Freedom.
Medicare Advantage plans also have out of pocket maximums that range from $4000 dollars to $7000 annually, that is, if you don’t qualify for low-income options which could cause a financial hardship for someone living on a fixed income.
Medicare Supplements offer plans with zero dollar out of Pocket cost. No copays, no maximum out of pockets.
I would suggest that everyone sit down or contact a professional before jumping into an advantage plan, because once you select Part C (advantage) of Medicare and you have had it longer than a year, you will have to prove you are insurable to go back to original Medicare. Which means you could be stuck in a Medicare Advantage plan with thousands of dollars in out-of-pocket expense each and every year.
Medicare Supplements premiums are your true out-of-pocket expense, and the premiums are usually just north of $100 dollars per month. I don’t know about you, but I would rather pay $1200 annually for premium than have $4000- $7000 dollars of out-of-pocket annually.
Medicare Advantage may or may not be an advantage. Ask us for a free consultation before you make the decision of a lifetime!