They appear to cost less, but Medicare Advantage
plans may actually cost more!
The average cost of supplemental Medicare insurance is increasing
faster than the cost of living while Medicare Advantage plan rates
are decreasing.
What most Medicare beneficiaries don't take into account
is that many healthcare costs, particularly hospitalization,
can be more costly with a Medicare Advantage plan.
A recent Kaiser report suggests that nearly half of all
Medicare Advantage enrollees will have higher healthcare
costs than people with Original Medicare for a 5-day
hospital stay.
Medicare supplements can be difficult
to understand and many people
mistakenly believe they are more
expensive than the Medicare
Advantage option.
Even though most Medicare
Advantage plans appear to have a
lower cost, many Advantage plans
have an out-of-pocket limit as high as
$7,550 per year.
The uncertainty over the actual total cost of Medicare and
supplemental insurance vs.
Medicare Advantage prices are
responsible for many people making
the wrong coverage choices for their
personal health and financial situation.
Over half of all Medicare Advantage plans
charge their members $1,500 or more for a
5-day hospital stay, while Original Medicare
costs just $1,452.
Even though Medicare Advantage plan premiums are
decreasing, the total cost to be in a plan is rising.
Most people with Medicare benefits
can strike a good balance between
cost and coverage with a Medicare
Supplement Plan N policy.
For many seniors and people with
disabilities on a fixed budget, making a
$100 per month premium for a Plan N
may seem excessive compared to most
Medicare Advantage plans.
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