Tue. Jul 16th, 2024

Different Types of Medicare Advantage Plans Explained 

A Medicare Advantage Plans gives you access to fitness programs (gym memberships or discounts) and some vision, hearing, and dental benefits (such as routine check-ups or cleanings). Plans can also be selected to cover even more benefits. Medicare Advantage (MA) plans are a great option for individuals who want additional coverage and benefits beyond their Original Medicare plan. With so many different types of plans available, it can be overwhelming to try to decide which one is best for you. In this blog post, we will provide an overview of the various advantages and disadvantages of MA plans and explain the differences between HMOs, PPOs, SNP plans, Liability Plans & MSA Plans. This information should help you make an informed decision about choosing the right plan for your health care needs.  

Medicare Advantage Plans:

In most cases, services from out-of-network providers are not covered, and you will have to pay for them yourself. I have some spare cash. Otherwise, supply is covered by providers within the network. Usually, it would be best if you choose a general practitioner (PCP) to coordinate your care. In most cases, your GP may also refer you to a specialist for coverage. Certain services may require prior authorization. 

1. Health Maintenance Organization 

How Does A Health Maintenance Organization Work? -If you are looking for Medicare Advantage Plans for 2023, then this is the most preferred plan. HMOs are organized public or private entities that supply their subscribers with basic and supplemental health care services. The organization protects its network of healthcare providers by contracting with general practitioners, clinical institutions, and specialists. Healthcare facilities contracting with HMOs receive agreed-upon fees for supplying many services to HMO subscribers. Agreed payments allow HMOs to offer lower premiums than other health insurance plans while supporting high-quality care through their network. 

Advantages of HMO Plans 

  • Typically, lower monthly premiums and costs (including deductibles, co-payments, and co-insurance) 

Disadvantages of HMO Plans 

  • Risk of being still on the network or incurring all costs out of pocket 

2. Preferred provider organization 

What Is A PPO And What Are The Advantages? | Health InsuranceYou must find a new doctor if your current doctor is not on the network PPO plan. With these plans, you will pay less to see a healthcare provider in the plan’s network than if you go outside of that network. Kaiser reports that in-network service out-of-pocket limits for 2022 will average $9,228 for local PPOs and $9,452 for regional PPOs. 

If you have a doctor, you would like to continue seeing, please make sure that the doctor is connected to the plan’s network before signing up. The Advantage Plan should provide consumers with lists of healthcare providers. Still, Barry said some research and many beneficiaries found these lists to need to be more accurate, updated, or both. 

Advantages of PPO plans 

  • Costs are lower for in-network services. 
  • Prescription drugs may be covered. 

Disadvantages of PPO plans 

  • Costs are higher for out-of-network services. 

3. Private fee-for-service plans 

What Is Fee-for-Service Insurance, and Who Uses it? - GoodRxThese plans differ from others because they display how much it will pay doctors and hospitals. Sometimes doctors can decide not to treat you, even when you’ve seen them before. Before using the service, confirming that the provider treats you under the plan and agrees to accept the plan’s payment terms is essential. You must present your membership card each time you visit your healthcare provider. This is a plan that does not require a referral letter to a specialist and does not require a family doctor. Some of his PFFS plans offer prescription drug coverage. 

 Advantages of PPF 

  • Lower maintenance costs with an in-network provider. 
  • Covered Specialist for Out-of-Network Care 
  • Prescription medications may be covered. 

 Disadvantages of PFF 

  • Out-of-Network Care Is Costlier 
  • Higher Premium  
  • Some providers may not accept your plan, or some services may be covered, but others may not. 

4. Medical savings account 

Independent Investment Advice. Personalized Service.Warren Buffett Style  Value Investing

This plan will only start covering expenses once you reach a higher annual deductible than other MA plans, although this varies by plan. Additionally, MSA plans to put money into a particular savings account that can be used to pay for eligible medical expenses. The deposit amount varies by plan but may cover costs before the deductible is met. 

MSA plans do not cover prescription drugs, so you must subscribe to a standalone Part D plan to get coverage. 

 How to use an MSA plan: 

  • Choose and enroll in an MSA plan. 
  • Set up an MSA with a bank of your choice. 
  • Medicare supplies an annual amount to the plan for your care. 
  • Add money to your plan account. 

If you spend all your money, pay your Medicare-covered benefits out of your pocket, up to your deductible. Once you reach your deductible, your plan will cover Medicare-covered benefits. Any money left in your account at the end of the year will be carried forward and can be used the following year. 

 Advantages of MSA 

  • Part B premiums must be paid but are free (this applies to all Medicare Advantage plans). 
  • You can save on medical expenses. 
  • Funding is recalculated annually. 

Disadvantages of MSA 

  • High Deductibles  
  • does not cover prescription drugs 

5. Special Needs Plans 

Special Needs Plan (SNP) Coverage | Buffalo Health AdvisorsMedicare SNP is a type of MA plan, but membership is specific. They were restricted to individuals with a medical condition or characteristic. Most SNPs tailor their services, provider networks, and formulations to the specific needs of the groups they serve. 

 Advantages of SNP

  • Tailored benefits, providers, and formularies to meet the specific needs of members 
  • may cover out-of-network services 
  • Include Part D prescription drug coverage. 
  • Lower costs, and limits on out-of-pocket costs 

Disadvantages of SNP 

  • must select a PCP 
  • must have a referral to see a specialist 
  • must meet specific eligibility criteria to qualify. 
  • Many times, a few types of SNPs are only available in some areas. 


If you’re considering enrolling in a Medicare Advantage plan, then, this information will help you compare individual plans and diverse types of coverage. HMOs are the most popular choice and can save money, but they also come with restrictions. We encourage you to compare PPOs, private-pay services, and lesser-known options to see which best suits your needs. Additionally, Advantage Plan costs and coverage may change each year, so consider your options carefully before re-enrolling each year.

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *