Having to choose between a Medicare original plan A or B can be challenging enough. And yet, these original plans don´t cover everything and some patients notice that a advantage to this original plan is more than necessary to save costs. As there are 10 different advantage plans to choose from, most patients are, once more, left questioning themselves which of the 10 will be the best option. Only after knowing what all these 10 plans are about, will you be able to discover which one is the best one for your individual situation.
How are the 10 Medicare advantage plans divided? Get a quote for medicare advantage plans for 2019 to save money.
You won´t be able to choose from a Medicare advantage one to ten; instead they are named after the following letters: A, B, C, D, F, G, K, L, M and N. Especially for citizens who travel a lot through the United States or have two homes in different parts of the State, it is important to know that all these insurance plans are the same in (almost) all states. That means, that if you choose the plan A in, for example, Iowa you will get the same benefits if you choose the plan A in a different state, like Colorado. Why almost all states? Out of all 50 States, three of them do not follow the same standardization for Medicare and their Medicare advantage benefits and plans are uniquely standardized and therefore not similar to the rest of the country. These three states are Massachusetts, Minnesota and Wisconsin.
How are the premiums set for Medicare advantage plans?
Insurance companies in the 47 states, as mentioned, need to offer the same benefits for the same medicare advantage plan. However, there is no standardization when it comes to the price and the costs for the premium. Depending on the state and the insurance company, the price might vary. In general, however, all insurance companies base their premium prices on one of the following aspects:
- Place of residence: some insurance companies charge the same premium price for all citizens of that state, regardless the age
- Age when you´ve entered: there are insurance companies that set their premium costs based on how old you were when you first entered the Medicare advantage plan. In these cases, the younger you are when you get it, the less you will pay
- Age you´ve reached: this method is similar to the one before, it is set based on the age you were in when you first enroll in this plan, however this type of method increased premiums the older you get
In addition, health insurance companies may and can increase their premiums with time for other reasons, such as inflation or even a bad prediction on the part of the company. If, for example, the market is smaller than what they expected and they are charging less than required to cover the costs, they may increase the premiums in that particular place. A general rule says, comparing different companies will help you find the best price for the same benefit plan.