How much are Medicare advantage plans in 2024?
Medicare Advantage Plans offer quality health care coverage at an affordable monthly premium. With traditional Medicare alone, you will have to pay co-insurance of 20% of the Medicare-approved amount out of your own pocket, each time you use a medical service, which can amount to a big medical bill very fast. With a Medicare Advantage plan, you will have the same if not better benefits at much lower annual out-of-pocket costs.
Advantage plans are offered by private insurance companies and must follow specific regulations set by the federal government, which ensures that all plans do provide benefits which are at least equal to, and many times better than original Medicare Part A and B. When it comes to price however, the insurers are free to set their own rate.
This means you will find a wide variety of Medicare advantage plans with different benefits and different costs on the market for 2024. One plan may include additional benefits such as wellness programs and prescription drug coverage, while another plan doesn’t. One company will have a large network of medical providers, while you may have a much smaller provider list to choose from with the next plan.
In general, costs for advantage plans are less than what you will pay for a Medicare supplemental insurance, as your annual out-of-pocket costs are capped for your protection, plus you will get better medical and sometimes even prescription drug benefits than original Medicare.
Medicare Advantage Plan Monthly Premium 2024
CMS.gov stated that Medicare advantage plans will continue to improve in 2024.
Don’t make the mistake and select a plan just based on its premium. You must also compare the plan’s benefits, the deductibles, and any co-insurance or co-payments. Also, be sure to check which network of health care service providers you must use to be covered.
Depending on the provider and the plan you select, you will find significant differences in these additional costs, so make sure to look at the total picture and not only at the monthly premiums when comparing plans.
No matter which Medicare advantage plan you select, you have to keep paying your Medicare Part B premium. Even with a ‘zero premium’ advantage plan, you are still required to pay your Medicare Part B premium every month.
Medicare Advantage Plan Annual Out-of-Pocket Limit 2024
Medicare advantage plans usually have an annual out-of-pocket limit, which caps the maximum amount you have to co-pay out-of-pocket at a certain limit, typically between $500 and several thousand dollars. Lower monthly premiums usually come with higher annual deductibles. While low monthly premiums help you save money if you don’t need any unforeseen medical care, a high deductible may haunt you in case you might develop a chronic condition or experience a serious illness that needs extensive care during the year.
Medicare Advantage Plan Deductible 2024
As a rule of thumb, if you don’t go to the doctor a lot, the lower monthly premium/high deductible option may be for you, risking that you need to pay a lot out of pocket if you fall sick. Keep in mind that even when you have reached your annual deductible, you are still required to pay co-insurance, which is usually between 20 and 30 % for the use of in-network services (HMO or PPO plans), but can be as high as 50%, depending on the plan.
When you compare Medicare advantage plan costs, make sure to compare the total amount of costs for each plan you consider. This means, don’t only look at the premium, but consider all possible costs, such as co-insurance, co-payments, deductible, or other out-of-pocket costs or fees.
The good thing about Medicare advantage plans is you can always switch between 5-star plans, and switch to a plan that better covers your current medical needs, or even go back to original Medicare.
