How to Choose Medicare Health Insurance

Medicare provides seniors with a choice of how they want to use their benefits. In addition to original Medicare, the Center for Medicare and Medicaid Services (CMS) allows people to sign over their Medicare benefits to approved private insurance companies. These Medicare Advantage plans offer health maintenance organization (HMO), preferred provider organization (PPO) and high deductible health plans. Of course, not every plan is right for every person and sometimes original Medicare is the best choice. Medicare subscribers need to make careful, informed decisions to get the most from their health benefits.

Instructions

• 1

  Obtain a Medicare Advantage plan brochure from CMS. These outline the various options, costs and consideration. CMS makes information available online and will mail free brochures on request.

• 2

  Consider your finances. Medicare Advantage plans require you to pay premiums as well as co-payments and deductibles. Original Medicare only has co-payments. Further, different Medicare Advantage options have different premium costs. Review them carefully to see what makes sense for your budget.

• 3

  Decide how much flexibility you need from your health insurance. Many private physicians don't accept original Medicare. However, they may accept Medicare Advantage plans through private insurers because of their higher reimbursement rates. However, in order to have access to more physicians, you have to pay premiums.

• 4

  Assess your health. Many Medicare Advantage plans have annual maximum payouts, making it possible to use up your benefits for the year. Original Medicare, on the other hand, will continue to pay for acute care costs no matter what -- which can be better for patients prone to hospitalization and in need of long-term care.

• 5

  Review the coverage outlines of each Medicare Advantage plan. Consider the health care you expect to use and look for the plans that adequately cover it. You may find that a plan with a high level of hospital coverage has high deductibles on outpatient specialist visits. If you're someone who sees an ear, nose and throat specialist frequently, for example, you may want to consider a different option.