Basics of Medicare Advantage Plans

Medicare Advantage Plans are alternatives to Original Medicare. They offer the same coverage as Medicare Parts A and B, plus additional bonuses for an extra monthly premium. There are multiple types of Medicare Advantage Plans. The two most well-known are the Preferred Provider Organization (PPO) and Health Maintenance Organization (HMO) plans. Each type of plan has pros and cons. Take a look below to learn more about PPOs.

PPO Basics

A PPO is a type of insurance plan that emphasizes flexibility and thorough coverage in exchange for a higher monthly premium. It is not specific to Medicare. Many different insurance models use the PPO model. A PPO works like this: insurance companies make agreements with preferred providers. These preferred providers will provide your care at a specific rate. You can still get care outside of these providers, called your network, but you will have to pay more in exchange.

Pros and Cons of PPO Plans

Many people who choose a PPO choose it for its flexibility and relatively full coverage. Because certain providers are in-network, it saves people money. They also have the option to see out-of-network providers and pay more. This is especially important for people who travel or may have emergencies outside of their network. The downside of a PPO is that monthly premiums and copays are higher than other plans like HMOs.
Comparing the multiple types of Medicare Advantage Plans can be difficult. For all of your Medicare questions and concerns, feel free to contact us at Proinsurance Hawaii today.