Premiums Advantage

Medicare Advantage plans can be very cost-effective, and in many areas, low or $0 premium plans are available. So how is that possible? There are two parts to how insurance companies get paid for Medicare Advantage plans. The first is the premium you as a member pay. The premium is determined by the benefits of the particular plan you purchase. It can be as low as $0 but can also be significantly higher. The second part is the funding the Centers for Medicare & Medicaid Services (CMS, the federal agency that oversees Medicare) pays the insurance company for providing the Part A and Part B benefits. Since Medicare Advantage Plans replace, Original Medicare CMS pays the insurance company a set amount based on location, health, and many other factors for each member. In turn, the responsibility for all care for that member is the responsibility of the insurance company. The money from CMS represents most of the money the insurance company gets to take care of each beneficiary. The better they are at helping you stay healthy, negotiating physician and drug prices, and other factors, the more additional benefits they can provide and lower they can keep your premiums. It is important to remember that you will still have to pay your Medicare Part B premium and Part A premium if applicable, in addition to the premium for your Medicare Advantage plan.