If you have signed up for Original Medicare, you may be looking for other ways to expand your coverage. Medicare Advantage plans, also known as Medicare Part C, is an alternative way to do this. Medicare Advantage (MA) plans can provide health benefits beyond Original Medicare, like routine dental services or prescription drug coverage.

Since Medicare-approved private insurance companies offer Medicare Part C, there are many differences between the MA plans, including additional coverage and costs. So, choosing the most appropriate Medicare Advantage Plan depends on your preference, circumstances, and budget. Here are some of the most common types of Medicare Part C plans.

Health Maintenance Organizations (HMOs)

Health Maintenance Organizations offers a network of providers. The healthcare providers contract with the insurance company to provide healthcare services usually at a lower negotiated rate. The insurance company, in return, requires you to receive services with the provider when you need medical care.

Because you can only use providers within the network, this MA plan tends to be less expensive than most of the other MA plans. Most HMOs don’t provide coverage out of the network, except during an emergency. While a few of the HMO insurance companies may allow you to go out of the network for certain services, it usually comes at a higher cost.

Preferred Provider Organization (PPOs)

Just like with Health Maintenance Organizations, Preferred Provider Organizations have a network of healthcare providers. However, this MA plan does not require you to use a healthcare provider within the network, although it is, generally, more expensive than using providers within the network. Due to the flexibility it offers, a PPO plan is usually more expensive than an HMO, even when they provide almost the same set of benefits.

Moreover, PPO doesn’t require you to choose a primary care physician, and you don’t need referrals to see a specialist. With this, you reduce the time it takes to get the medical treatment you need.

Private Fee-for-Service (PFFS)

Unlike PPOs and HMOs that are a common type of private health insurance plan, Private Fee-for-Service is specifically made for Medicare. With this type of Medicare Advantage plan, you don’t have to get a referral to see a specialist or select a primary care doctor. PFFS allows its subscribers to see any health professional who agrees to Medicare policies and rules and is eligible to receive payments. However, just like PPOs, costs are lower when you are seeking treatment within the provider network.

Special Needs Plans (SNP)

This type of MA plan requires that its membership is limited to those who fit certain eligibility criteria. Before you qualify for an SNP, you must either live in a nursing home or have been diagnosed with disabling health conditions or be eligible for Medicaid assistance. SNP includes Part D prescription drug coverage.

If you have any questions about which Medicare Advantage Plan may be right for you, our licensed and experienced insurance agents would be happy to help. Contact us today to get started.