It is not easy to figure out what Medicare Advantage Plans is and what they are not. Some of the plan components are confusing, but most have straightforward definitions.
Generally speaking, Medicare is a health care program that is in place to cover hospital stays, doctor visits, etc. For each Medicare Advantage Plan, a pre-set percentage of the cost of the medical service is covered by the Medicare provider. You pay a flat rate for the rest. So what is a flat rate?
The flat rate payment system has been around since the beginning of time. In Medicare Advantage Plans, a percentage of the charges are deducted from the flat rate. There is no change in the payment from the provider.
A surcharge fee is added on top of the flat rate for items such as deductibles and co-payments. The Medicare provider will then have to cover this surcharge fee and add it to the flat rate.
The difference between a Flat Rate Payment and a Surcharge Fee is substantial when it comes to Medicare Advantage Plans. With the flat rate plan, you can be sure that there is a basic standard, which everyone is going to follow.
However, with the surcharge fee, you don’t have the same level of security as there is a larger difference between the flat rate and the surcharge fee. There is a difference between being free or paying a fee. You don’t know what your rates are going to be until it is too late.
One plan that offers a surcharge fee is Advantage Medicare. This is a brand new plan for seniors that have had Medicare Part A and Part B for several years.
Instead of just being responsible for an additional payment for each service rendered, you are responsible for a specific sum of money every month. The amount is different for each plan, so this fee can vary greatly.
Another benefit is that the same flat rate is applied for the entire plan. As long as the fixed percentage is there, you will never be subject to surprises.
To get an advantage over the flat rate plan, a person must keep on top of their costs. Otherwise, the flat rate plan will continue to dominate all other plans.
The great thing about Medicare Advantage Plans is that you get a lot of choices. You can select the plan that is right for you, regardless of your circumstances.
While you can’t make plans for everyone, you can pick the perfect plan for you. This is how you can get a better deal when comparing Medicare Advantage Plans.