I have had my Medicare Advantage Plan for around six years. It has a monthly premium. I am very happy with the plan but when on a video call with my neighbor, who is new to Medicare, she chose a $0 premium Advantage plan from the same company. It also seems some of her out of pocket costs are lower than mine. Why are they different? My thinking is if you pay more for a plan it has to be better.
Thanks for the great question. Your neighbor has enrolled in a $0 premium Advantage Plan. The same company can have multiple plans with different benefits. Many companies are now offering plans with no premiums. Maybe you are unaware that Advantage plans are ANNUAL CONTRACTS and can change year to year. If you do not review your plan annually with an agent, you will be automatically enrolled in the plan you have. Each Advantage plan chooses their own copays for services. Just because your friend has a $0 premium plan does not necessarily mean the benefits are not as rich. Sometimes these plans have extra added benefits. In a nutshell, it is always a good idea to meet with an experienced agent/broker to help you compare plans and benefits. Advantage Plans can be reviewed every year between October 15th and December 7th. Just because a plan is $0 premium this year does not guarantee that it will remain a $0 premium plan for the next year.
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