The main question in the minds of many seniors is “why Medicare Advantage Plans are bad for me?” They are concerned that they will get stuck with huge hospital bills and Medigap premiums every month because they chose to pay for their medical care through an HMO or other private medical care provider. Although there are certainly some disadvantages to using an HMO or PPO, they are nowhere near as bad as the high cost of hospitalization and Medigap coverage that comes with Medicare Parts A and B. There are some things seniors should know before choosing one plan over the other.
Why Medicare Advantage Plans Are Bad – The Big Reasons
First, you must read the article fine print of any quote you are considering. Most Medicare Advantage Plans come with very large monthly premiums, and some have $0-per-month premiums. Some individuals may believe, upon hearing about these monthly fees, that they will be able to pay for their medical care out-of-pocket. However, that s not always the case, and in any case, even if you enroll in a MA plan, you could still be required to pay for other costs, such as copays, when you go to the doctor.
Second, make sure you understand any coinsurance or deductible associated with the plan. Many plans require you to pay nothing at all until you hit a certain deductible. Then, many plans will start to charge you copays and coinsurance, depending on how much the doctor visits you and what type of services you end up needing. If you need more comprehensive medical care, you could end up paying hundreds of extra dollars each month for copays and coinsurance. While it may save you a few bucks in the beginning, in the long run, this could end up costing you thousands of extra dollars in copays and coinsurance alone.