Hint: There could be some major savings involved.
Maurie
Backman Oct 3, 2019 at 7:01AM
Millions of seniors rely on Medicare for health coverage once they
turn 65, but original Medicare -- consisting of Parts A, B, and D -- isn't your
only option in this regard. You can instead enroll in a Medicare Advantage plan, and use it as your
all-in-one solution for your healthcare needs during retirement.
Medicare Advantage doesn't have different parts
for hospital care, preventive services, and prescription coverage like original
Medicare. Rather, with Advantage, you sign up for a single plan and pay a
single premium for it. Medicare Advantage plans, by law, must offer the same
level of coverage as original Medicare, but sometimes, you'll get that coverage
at a lower cost.
This especially holds true for 2020. In fact,
the Centers for Medicare & Medicaid Services recently announced that
Medicare Advantage premiums in 2020 are expected to drop 23% from 2018, while
plan options and their associated benefits are only likely to increase.
In fact, the average monthly Medicare Advantage premium will be the lowest it's
been in the past 13 years. That's good news for more than 24 million seniors
who are expected to enroll in an Advantage plan for 2020, and it's definitely
reason enough for you to consider doing the same.
Why get an Advantage
plan?
Believe it or not, Medicare Advantage often
offers a wider scope of coverage than original Medicare. For example, original
Medicare won't pay for dental cleanings, eye exams to check for vision, or
hearing aids, whereas Medicare Advantage generally picks up the tab for these
oft-utilized services. Now you're probably thinking: "Well sure, I'll get
better coverage, but I'll probably pay more." But not necessarily so. Many
Medicare Advantage plans come with competitive premiums and lower copays than
original Medicare. And with premium costs going down for 2020, you could save
even more.
Here's another perk of Medicare Advantage --
these plans place a limit on out-of-pocket spending on an annual basis, and
once you hit that maximum, you won't pay a dime for covered medical services
for the rest of the year. Original Medicare doesn't offer that same guarantee,
which means that if you stick with it, you could end up draining your retirement savings if your healthcare
costs escalate within a given year.
Finally, some Medicare Advantage plans offer
overseas coverage, whereas that's not something you'll get with original
Medicare. If you do a lot of traveling in retirement, that's huge.
Of course, Medicare Advantage isn't perfect. One
major drawback you should be aware of is that with an Advantage plan, you're
limited to a specific network of medical professionals that may not be
convenient for you. That could become problematic if you spend time in
different parts of the country and need more flexibility as far as providers
go.
Still, it pays to research your options under
Medicare Advantage, especially given the news that premium costs are expected
to drop. If you're interested in signing up for an Advantage plan for 2020, you
can do so during Medicare's open enrollment period, which begins on Oct. 15 and
runs all the way until Dec. 7.
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