Medicare Advantage Zero Dollar Plans
A Medicare Advantage plan can be a great way to help save on medical expenses. While you also have the option to enroll in a Medicare Supplement plan when you turn 65, most Advantage plans in Nevada cost you $0 a month to enroll. This means that you can cut out your premium for a Supplement and Prescription drug plan and will only be responsible for your Part B premium. Advantage plans can be a great option for anyone that is on a budget or is a low utilizer of the plan. In addition, most Medicare Advantage zero dollar plans will include coverage for services like dental, vision, and hearing aids. We often get asked how the insurance company can possibly afford this. While there are many factors to this question, below are some of the biggest answers.
Reimbursement
Once a Medicare Advantage plan takes over your care, they are now responsible for your medical claims. The typical amount that Original Medicare covers is 80%. Therefore, you are responsible for the other 20% unless you have a supplemental plan that covers some or all of that amount. Once you enroll in an Advantage plan, the insurance company of your choice is now the primary payer of your claims. Medicare will reimburse the insurance company for taking on this risk.
Smaller Network
The largest network of doctors you can have is Original Medicare. This is essentially any doctor that is contracted with Medicare in the United States. If you choose a Medicare Advantage zero dollar plan, you will have a smaller list of doctors to choose from. This smaller list allows the insurance company to control your cost for medical services more effectively. Your Medicare Advantage carrier will have contracts with the participating providers that you can see. The negotiated rate that doctors will charge for medical services is almost always less than what you will be charged out of network.
Copays
Medicare Supplement plans typically cover some or all of your medical expenses in exchange for a monthly premium. Advantage plans do not charge you a premium but they will charge you copays for medical services. While these copays amounts can be very low and sometimes even be $0, most major services can be expensive. By shifting some of the cost onto you, this helps the insurance company afford to not charge you for being a member.
Please reach out to our office if you have additional questions about your current Medicare plan. We can also help if you are turning 65, becoming Medicare eligible, or you would like to switch your current policy. As a health insurance broker, we do not charge fees and can help you enroll in every option that is available to you. You can also sit down and speak with a broker face to face in our local Reno office.
