Do I still have to pay for Medicare Part B premiums if I get an MA plan?
Yes. You can think of medicare advantage plans tucson az as primarily supplemental plans. You can choose MA after you enroll in Medicare Parts A and B. A difference with MA plans is in how the payments flow between Medicare, the health insurance companies, and the providers of health care services.
In the case of MA plans, Medicare pays the insurance companies a fixed dollar amount per month for coverage, then the insurer pays the providers a negotiated amount for services performed. In Original Medicare, payments are made to the hospitals or providers for Medicare’s share of any covered services you receive. You pay your share of Part B by way of a Medigap plan or from your pocket, depending on the plan you choose
Your Part B Medicare premiums are billed directly through Medicare while your Part C premiums are billed through the private insurance company. There is a little bit of a difference with how you pay Medicare and your private insurance company.
Premium Payments to Medicare: if you receive Social Security, Office of Personnel Management, or Railroad Retirement Board benefits, Medicare will automatically deduct your Part B premiums from your benefits check. If you don’t receive these benefits, you will receive a bill called ‘Notice of Medicare Premium Payment Due’. You can then pay by mailing a check, use your bank’s online billing to make payments every month, or sign-up for Medicare’s bill pay to have the premium come out of your bank account automatically.
What’s the catch with $0 or very low premiums?
A network. That’s the catch. In order to use most MA plans, you agree to get your standard medical care (not including emergency care) within a specific network of physicians, hospitals or clinics, and pharmacies, and you’ll need referrals to specialists. If your doctors are not part of the MA network, you may want to choose another insurance plan.
Premium Payments to Private Insurance Companies: if your insurance company charges a premium for your Part C plan, you can set it up for your payments to come out of your Social Security benefits. This is not automatic. You must submit a request to Social Security, and they have to approve your request before your Part C payments will be deducted. If you don’t get Social Security, you can also pay from your bank account or mail a check.
Medicare Advantage got its start in 1995. The federal government created it as a way to give people more options. Private health insurance companies sell Medicare Advantage plans. The federal government regulates them.
Before we get into how Medicare Advantage is different from Original Medicare, let’s look at how it’s the same. All Medicare Advantage plans have to offer at least the same benefits as Medicare Parts A and B. That means if Original Medicare covers hospital care at a certain level, so will every Medicare Advantage plan on the market.
But the benefit of Medicare Advantage plans is that they offer more coverage than Original Medicare Here are three key ways in which Medicare Advantage gives you more than Original Medicare.