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. Contact Us At: MedicareWire.com