Is It Worth Spending On The Medicare Advantage Plans?

The Medicare Advantage plans are an additional medical insurance and it helps to pay towards the out of pocket expenses which the original Medicare plan does not provide for.

The Advantage plans could pay for the deductibles, coinsurance and copayments.

Understand the Medicare advantage plans

The Medicare Advantage plans are one of the popular advantage insurance plans and this is sold to you by the private insurance companies. One has to be enrolled in the original Medicare to be able to purchase the Medigap plan.

The original Medicare plan plays for Part A which is hospital insurance and Part B which is medical insurance. These do not pay for all the health related services and the medical drugs. The Medigap pays towards the out of pocket expenses that you would have to incur in case you just had the original Medicare plan. The amount that you may have to pay towards the hospital expenses could be substantial if you just had the original Medicare plan and thus it is smart to opt for a Medigap policy.

Are Medigap policies worth purchasing?

In case you have purchased the traditional Medicare plan but do not have any advantage coverage then the out of pocket expense could be substantial. There is no limit on how much you would have to pay towards the medical costs.

The Medigap plan only pays for the out of pocket costs for those services that are not paid for by the original Medicare. There are some Medigap policies that pay for services outside of the country as well.

If you have the original Medicare as well as the Medigap plan then the original Medicare will first pay towards the heath expenses and the Medigap policy will then cover for the rest.

Do you need advantage coverage?

The advantage medical plan is highly promoted. The advantage plans are not very expensive but take care that you do not end up buying any duplicate plan.

If you are over the age of 65 and have the original Medicare insurance then you can get compete coverage by buying the Medigap plan.

These questions will let you decide whether you need to purchase a Medigap plan for your health needs.

  • Does your current health plan cover for your health expenses
  • Do you have sufficient savings to pay towards the out of pocket expenses
  • How likely are you to get admitted or injured
  • Does it make sense to pay towards the advantage insurance over time?

Also make sure that you understand the limitations of the Medigap plan so you know what you are buying.