Medicare Advantage

AAA

DEFINITION of 'Medicare Advantage'

Hospital and medical insurance (for senior citizens and others who qualify for Medicare) provided by private companies rather than the federal government. Medicare Advantage plans, also called “Part C” plans, provide the same Part A (hospital) and Part B (medical) coverage that Medicare does, with the exception of hospice care. They usually provide Part D (drug) coverage as well. As of 2014, about one-third of Medicare participants used a Medicare Advantage plan. Medicare pays the premiums for participants in Medicare Advantage plans.

INVESTOPEDIA EXPLAINS 'Medicare Advantage'

The most common types of Medicare Advantage plans are health maintenance organization (HMO) plans, which accounted for about two-thirds of plans in 2014, preferred provider organization (PPO) plans, private fee-for-service (PFFS) plans and special needs plans (SNPS). The basic qualifications to join one of these plans are living in the plan’s service area, having Medicare Parts A and B, and not having end-stage renal disease. HMO point-of-service (HMOPOS) plans and medical savings account (MSA) plans are less common.

You can find a Medicare Advantage plan through Medicare’s online plan-finder tool. You may also be able to enroll in a plan online. You’ll need the information on your Medicare card, including your Medicare number and the dates when your Part A and Part B coverage began, to sign up. You can change Medicare Advantage plans during a specified enrollment period in the fall.

Like other types of health insurance, each Medicare Advantage plan has different rules about coverage for treatment, patient responsibility for costs and more. Also, joining a Medicare Advantage plan may make you ineligible to continue receiving health care coverage through your employer or union.

RELATED TERMS
  1. Medical Patent

    A legal protection against market competition that a government ...
  2. Reinsurer

    A company that provides financial protection to insurance companies. ...
  3. HIPAA Waiver of Authorization

    A legal document that allows an individual’s health information ...
  4. Medicare Doughnut Hole

    A range of total prescription drug spending in the Medicare Part ...
  5. Hospital Visitation Authorization

    A document that indicates who is allowed to visit a patient in ...
  6. Essential Health Benefits

    A set of benefit requirements that must be included in certain ...
Related Articles
  1. How the Affordable Care Act Changed ...
    Insurance

    How the Affordable Care Act Changed ...

  2. Don't Be Misled By Investment Advertising
    Home & Auto

    Don't Be Misled By Investment Advertising

  3. A Look At Single-Premium Life Insurance
    Home & Auto

    A Look At Single-Premium Life Insurance

  4. Health Insurance: Paying For Pre-Existing ...
    Home & Auto

    Health Insurance: Paying For Pre-Existing ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center