What is a Medicare Advantage plan?
With the passage of the Balanced Budget Act of 1997, Medicare beneficiaries were given the option to receive their Medicare benefits through private health insurance plans, instead of through the original Medicare plan (Parts A and B). These plans are required to offer beneficiaries at least the same coverage that is offered through original Medicare.

Medicare Advantage (MA) plans combine Medicare Parts A, B and a Medigap-type plan all into one health care policy, and are administered through private insurance companies that pay instead of Medicare, not in correlation with it. All original Medicare benefits, rights, protections and covered services apply to MA plans.

Original Medicare will not pay a member’s health care while he/she is enrolled in a Medicare Advantage plan. A health insurance card will be issued by the insurance company administering the plan and is to be used instead of the red-white-and-blue Medicare card.

This plan is similar to a network-style plan in that a member may receive health care services from any provider authorized to bill Medicare. The provider must also agree to accept the insurance company’s terms and conditions. As always, it is recommended that participants verify that his/her provider will accept the Medicare Advantage plan.