is a plan that combines the services of Medicare Part A and Part B, as well as some additional services, such as prescription drug coverage. Some plans also cover vision and dental services. Medicare Advantage is available through private health insurance companies.
When a person is shopping for Medicare Advantage plans, they may find that some offer free monthly premiums. The exact price will vary depending on the Advantage plans available in a certain area.
Private health insurance companies can offer premium-free services in some instances because they receive money from Medicare.
The insurance companies then use this money to negotiate costs with their network of physicians, hospitals, and healthcare organizations. As a result, they can pass along cost savings to their plan members.
As with other aspects of Medicare, having a Medicare Advantage plan does not mean a person will not pay for healthcare costs at all. Medicare Advantage plans often have specific deductibles and copayments for certain services.
The cost-effectiveness of an Advantage plan depends upon the types of healthcare services a person normally uses.
Medicare Advantage plans have a yearly out-of-pocket limit for costs. This means that once a person spends a certain amount of money on deductibles or coinsurance payments, the plan will cover 100% of treatment costs until the next year.