Is Medicare Part C or Medicare Advantage worth the extra cost?
The structure of health insurance is based on various “rooms. ” Part a covers hospital stays, qualified nursing care, and palliative care services; Part B covers ooutpatient services, most visits to the doctor, and most drugs that must be administered by health professionals; and Part D covers most “self-administered“Prescriptions.
In 1997, enacted changes to Medicare legislation that allowed Part C plans, now more commonly known as Medicare Advantage or Managed Medicare. These plans “are another way to get your Medicare Part A and Part B coverage” and are offered “by private companies approved by Medicare who must follow the rules set by Medicare.”
What does a Medicare Part C plan include?
To be eligible, a person must have a Medicare Part A and B plan and then can opt for a Part C plan which offers other benefits like gym memberships, dental care and vision.
According to the Kaiser Family Foundation, in 2020, 39 percent or 24 million Medicare beneficiaries had a Part C plan. Enrollment in these programs has grown steadily over the years. Based on enrollment trends, the Congressional Budget Office, which provides analysis and research to lawmakers, estimates that up to 51 percent of beneficiaries could opt for a Medicare Advantage plan.
Who offers these packages?
There are only a handful of insurers that offer these plans, with “UnitedHealthcare and Humana together represent 44 percent of all Medicare Advantage registrants nationwide, and BCBS affiliates (including BCBS anthem plans) counts for another 15 percent registrations in 2020. “
As a result of these organizations are CVS Health, Kaiser Permanente, Centene and Cigna, which together represented a little less than a trimester of all registrations.
Are these plans saving money for the elderly?
These plans are funded by premiums, deductibles, and federal funds paid to private insurance companies to run the programs. In 2017, the National Bureau of Economic Analysis found that only about 30% of total income from these plans covered medical care.
However, in recent years these Part C shots have be scrutinized after various reports revealed that “Only about a fifth of the additional reimbursement is passed on to patients in the form of lower premiums, better care or more services. “
As for other profits, the vast majority are pocketed by companies, some of which have spent them âadvertising – to attract more Advantage members, so they can claim more of the enhanced refund, which they use to advertise to get more members. “
However, supporters of the program claim that while this may have been true in the early years of the program, health spending has increased to more expected figures. When selecting a new program it is very important to know that once you Advantage of Medicare, it may be difficult to return to basic benefits.
In an interview with NerdWallet, the online financial news outlet, Tatiana Fassieux, training specialist at California Health Advocates, says that âpeople contact their state health insurance assistance program, who can provide free, impartial, individual advice.“
These programs may be most beneficial for people with chronic illness or who could quickly pay their deductible if that means paying a slightly higher premium.