insurance agencies came up with Medigap or Medicare Advantage plans for helping seniors get covered against different cost-sharing which would have to pay under the new insurance plan for elderly. The advantageal plans were intended for helping seniors cover the expenditure of Part A & Part B co-insurance and deductibles. For several years, seniors were offered only these type of advantageal plans. However, in 1997 under the Act of Balanced Budget, the federal government came up with an entirely new plan known as Medicare Advantage Plan.
But, these plans operate very differently as compared to the advantage plans. So, it becomes essential for you to know the difference prior to making your choice,
Enroll in a 2019 Medicare Advantage Plans: https://www.medicareadvantageplans2019.org
To start with, there were was an ever-increasing expense associated with Medicare & Medigap plans. With rising inflation increased the overall cost of Medicare co-insurance & deductibles.
Secondly, a number of citizens in the US depended on social security as their only source of income after retirement. At times, it was too late for them before realizing this income wasn’t actually enough for them for meeting their day-to-day needs. This issue further worsened because Medicare didn’t pay for their retail prescription medications. As a result, most seniors required to pay for these expenses on their own.
When a few beneficiaries wanted to drop advantage plans and took their chances, a number of mishappenings soon followed. A person who is healthy at the age of 65 may have opted to stay away from health insurance. But, when he/she later developed a disorder that required, for instance, a chemotherapy, they found themselves facing huge expenditures for the twenty percent which they owed after Medicare compensated its 80% share. The government was concerned over the fact that these people would then be denied a proper care since they could not afford it.
Last but not the least, there have always been some issues with Medicare Plans since there’s hardly any way of estimating exactly how much a person will be spending on health care expenses every year. A few people might pay way less because of their good health while others might have to pay a huge amount for enjoying the same benefits.
The above scenario lead to a guessing game when the Federal government tried to estimate how much they would have to spend each year on the senior healthcare in the country.
As a solution to these problems, the government came up with that allowed private insurance agencies sell their own Medicare plans, which is initially known as Medicare+Choice coverage. Later it evolved into Medicare Part C or the Medicare Advantage Plan.