What Is Managed Medicare?

Many elderly and disabled Medicare beneficiaries like having health care options. Managed Medicare, also known as Medicare Advantage, is an alternative to the traditional Medicare, which is received straight from the federal government.

Definition

• Medicare Advantage (MA) plans are private health plans. These private heath plans have contracted with Medicare to provide beneficiaries the benefits they need.

Plans

• There is just as much variety in selecting MA plans as there is for any other health insurance policy. MA plans are available as HMO, PPO, PSO and fee-for-service plans. There are also Medicare Savings Accounts (MSA) and Special Needs plans for those with particular diseases.

Prices

• MA plans tend to have a higher cost because they have additional benefits. MA plans will often charge a premium in addition to the original Part B premium. Additionally, they charge deductibles and co-payments for services.

Rules

• MA plans must offer at least the same services at as traditional Medicare. MA plans may offer these services at different restrictions and costs. MA plans often restrict beneficiaries to a network of providers. Beneficiaries have the right to switch plans during designated enrollment periods and they have the right to an appeals process.

Part D

• Most MA plans are packaged with a Part D plan. MSA and fee-for-service plans, however, do not include Part D plans and beneficiaries will have to purchase a stand-alone Part D plan.