How to Lower Healthcare Costs with Medicare Advantage Plans

Are you worried about rising healthcare costs as you age? For those on Medicare, the good news is that Medicare Advantage plans (Part C) offer several strategies for potentially lowering out-of-pocket expenses. These plans, provided by private insurance companies approved by Medicare, often bundle together hospital, medical, and prescription drug coverage, and may even offer extra benefits like vision and dental care.


Let’s explore how Medicare Advantage can help you manage healthcare expenses, with expert insights from Proinsurance Hawaii, your trusted local resource:

1. Maximum Out-of-Pocket (MOOP) Limits: A Safety Net for Unexpected Costs
  • Unlike Original Medicare, which has no annual limit on out-of-pocket spending, most Medicare Advantage plans set a yearly cap on how much you’ll pay. This MOOP provides crucial financial protection and helps you budget with confidence. Once you reach your plan’s MOOP, it covers 100% of your remaining costs for covered services for the rest of the year.
  • Example: Imagine your plan’s MOOP is $5,000. If you have a major surgery that costs $10,000, you’ll pay $5,000 out of pocket, and the plan will cover the remaining $5,000. This prevents you from facing insurmountable medical bills.
2. Lower Copayments and Coinsurance: Savings on Every Visit
  • Medicare Advantage plans typically have lower copayments (flat fees for services) and coinsurance (percentage of costs you share) compared to Original Medicare. This can translate to substantial savings on doctor visits, specialist consultations, lab tests, and other essential services.

  • Example: Your Medicare Advantage plan may have a $10 copay for a primary care visit, while Original Medicare might require you to pay 20% of the total cost. Over time, those savings add up!

3. Additional Benefits: Comprehensive Coverage for Less
  • Medicare Advantage plans often include valuable extras not covered by Original Medicare. These can include:
  • Routine vision and dental care
  • Hearing aids
  • Fitness programs or gym memberships
  • Transportation to appointments
  • Over-the-counter (OTC) drug allowances
  • Telehealth services
  • Example: If your parents need regular dental care, a Medicare Advantage plan with comprehensive dental coverage could save you hundreds or even thousands of dollars compared to paying out of pocket.
4. Prescription Drug Coverage (Part D): Managing Medication Costs
  • Most Medicare Advantage plans include prescription drug coverage (Part D) as part of the package. This simplifies your coverage and often offers lower costs compared to purchasing a stand-alone Part D plan.

  • Example: A Medicare Advantage plan with integrated Part D could mean one less premium to worry about and potential savings on the medications your parents need.

5. Care Coordination:
  • Some Medicare Advantage plans offer care coordination, where a team of healthcare professionals helps manage your care, ensuring you get the right treatments and services to stay healthy. This can help prevent costly hospitalizations and complications.

The Biden-Harris Administration is Lowering Health Care Costs in Hawaii

The Inflation Reduction Act, passed under the Biden-Harris Administration, brings significant changes to Medicare in Hawaii. These changes include:

  • Capping insulin co-payments for Medicare beneficiaries who use insulin.
  • Capping Medicare beneficiary out-of-pocket costs in Part D at $2,000 in 2025.
  • Allowing Medicare to negotiate prices for high-cost drugs.


These initiatives aim to make healthcare more affordable for Hawaii residents, especially those with chronic conditions or relying on expensive medications.

Source: The Inflation Reduction Act of 2022

Pro Tip: Partner with Proinsurance Hawaii for Expert Guidance

Navigating Medicare Advantage options can be overwhelming. Proinsurance Hawaii, a local expert with over 25 years of experience, can guide you through the process, ensuring you choose a plan that maximizes your cost savings while meeting your specific needs. We offer personalized consultations, compare plans from multiple carriers, and help you understand the benefits and costs involved.

Why You Might Want to Change Your Coverage:

Over time, your healthcare needs and financial situation may change. It’s essential to regularly review your Medicare coverage to ensure it still aligns with your current situation. Here are some reasons why you might want to explore a different Medicare Advantage plan:

  • Cost Increases: If your plan’s premiums, deductibles, or copays have gone up, you might find a more affordable option.
  • New Health Needs: If you’ve developed new medical conditions, a different plan might offer better coverage for your specific needs.
  • Prescription Drug Changes: If your medication needs have changed, another plan may have a better formulary (list of covered drugs).
  • Dissatisfaction with Service: If you’re not happy with your current plan’s customer service or provider network, exploring other options could improve your experience.
The Medicare Annual Election Period (AEP)

If you’re considering switching Medicare Advantage plans, you can do so during the Annual Election Period (AEP), which runs from October 15th to December 7th each year.

Read More:

Common Mistakes to Avoid When Selecting Medicare Supplement Plans

Why Hawaii Residents Need to Consider Medicare Supplement Policies

Caring for Kupuna: Your Guide to Managing Your Parents’ Healthcare in Hawaii

Key Takeaways: How Medicare Advantage Can Save You Money

  • Capped Out-of-Pocket Costs: You won’t be surprised by excessive medical bills.
  • Lower Copayments and Coinsurance: Pay less for routine visits and medications.
  • Extra Benefits: Enjoy added coverage for vision, dental, hearing, and more.
  • Prescription Drug Savings: Most plans include Part D coverage.
  • Care Coordination: Proactive care can prevent costly complications.


Don’t let healthcare costs weigh you down. Contact Proinsurance Hawaii today at 808-735-0106 for a free consultation and take control of your healthcare expenses!