Updated on March 30, 2020
Don’t Pay For Medicare Advantage Plans
It appears that the government is gearing up to roll out Medicare Advantage plans for 2021. The Obama Administration has announced that they plan to introduce more options to Medicare beneficiaries, such as an increased choice of doctors and specialists. Of course, the question is whether they will provide the best health care options to seniors or not.
Unfortunately, Medicare Advantage plans are not the answer. Like most benefits plans, they can actually be less effective than traditional Medicare. Doctors may be reluctant to take Medicare patients as the extra payment can be very low. And consumers are losing faith in these plans and switching over to private health insurance.
If you are worried about the upcoming changes to Medicare, read on. I am going to tell you why Medicare Advantage plans are not the way to go. And then I want to give you a few tips on how to find the best Medicare plan.
First of all, you need to understand what a “bonus” is in terms of Traditional Medicare. This is defined as a “fixed amount per visit, per condition, or per hour paid by the insurer”on the same basis as the fee-for-service rates.”
If you go to a doctor’s office with Medicare Part A, Medicare Advantage Plans for 2021 has no impact on the quality of care you receive. However, if you go to the same doctor who specializes in treating Medicare beneficiaries, then you are likely to receive inferior health care. This is because the same doctor will bill you two different rates – one for Part A and one for Part B.
The same is true for Part B. If you have this plan and go to the same doctor who specializes in Medicare Part B, then you will be paying double the normal fee. Even worse, if you choose the Part B specialist with a regular fee-for-service Medicare plan, you will pay double the normal fee.
This basic concept is important because most Americans do not know this is true. Many people feel that Part C will be more expensive than Part B. This is not true.
In fact, Part C will be more expensive than Part B, as it is based on the same principles that govern Part B. Essentially, Part C is exactly like what you would have gotten from a traditional fee-for-service Medicare plan. It is designed to be more cost-effective for Medicare recipients.
Use Medicare Advantage Plans for 2021 to save. you are paying more for care because the government will pay less. Plus, the providers who administer Medicare Advantage Plans must adhere to strict rules set by the government. They cannot approve certain procedures and can’t negotiate for lower charges.
While the plans have certain criteria for who they can accept, this does not mean that you are any safer using Advantage Plans. The best thing you can do is visit with a Medicare Specialist and get your medical history and expectations. You should also find out how you qualify for Part C and other specifics about your particular plan.
From the beginning, it was apparent that the government did not want to compromise the integrity of these plans. Thus, they kept control of them and made sure that there were no side deals in place.
For Medicare, it would have been easy to simply permit the plans to compete with traditional Medicare. However, the government is confident in the value of its Part D program and is determined to maintain the security of that plan.