Do Medicare Advantage plans really save seniors money in the long run? Why or why not?
Answered by 16 licensed agents
They can. Medicare Advantage typically offers additional benefits such as Dental, Vision and Hearing- the emphasis on these plans is Preventative Care. The better you take care of your health, the less costly it tends to be.
If you break it down, usually a Medicare Advantage plan is about $0 monthly premium, and includes your prescription drug coverage. You will still have to pay your Part B premium (in 2025 the standard premium is $185) and any copayments associated with your plan for doctors visit, procedures, medications. This is why Medicare is considered the Pay as You Go Plan. And that suits some people just fine.
With a Medicare supplement, you are responsible for your Part B premium, your Medicare supplement premium, your prescription drug plan premium and any additional policies you may require such as a Stand-alone Dental, or bundled Dental, Vision and Hearing policy (because Medicare Supplement plans do not include coverage for these). This is why a Medicare Supplement/Medigap plan is known as a Prepaid Plan.
Advantage Plans will save money if your on a PPO Plan and pays in and out of network. HMO Plans pay in network, but normally you pay out of network.
Yes, they do. I have a study comparing Medigap and Medicare Advantage over 20 years, and even if beneficiaries reach their max out-of-pocket half the time, Medicare Advantage still comes out ahead in overall costs.
Answered by Bryan Smith on March 10, 2025
Broker Licensed in UT, AL, AR & 35 other states
Medicare Advantage plans may be less expensive when you are healthy. Medicare supplements or Medigap may be less expensive if the worst of the worst happens to you. However I can give you examples directly from my clients who have ended up paying more on a Medicare Advantage plan. While you may feel healthy now 85% of our Medical Care comes after age 65.
Yes I believe Medicare Advantage plans can save a Medicare beneficiary a lot of money, especially if a catastrophic event occurs. Medicare Advantage plans are required to have a maximum out of pocket each year. Original Medicare has no maximun out of pocket. Medicare Advantage plans can also provide a credible drug plan at no additional cost. Many Advantage plans offer extra benefits and savings on things original Medicare does not cover, like a little dental, vision and free gym membership in some cases. There are many very good reasons to enroll in Medicare Advantage also known as part C. Medicare Advantage plans very from zip code to zip code, county to county and state to state. I think it is important to talk with a very experience Medicare plan expert that is independent. Got questions call or email today for a free analysis and quote.
Answered by Michael Denniston on March 25, 2025
Agent Licensed in FL, AL, AR & 11 other states
Yes and no. It really depends on the client. I do have clients that have been on a low-cost advantage plan for years and truly have not seen any specialist and take very little generic medication’s. Those folks have saved thousands of dollars over the years. I also have clients that were attracted to a low monthly premium, but have paid a lot in out-of-pocket cost for providers, hospital, states, specialist visits, MRI, etc.. The biggest disadvantage that I have come across on advantage plans is the limited network. I always encourage clients to pay close attention to an advantage plans “MOOP”. I will often compare that cost to a yearly predicted cost on a Medicare supplement plan to help paint a picture of the difference between advantage and supplement.
Answered by Gregg Matheny on March 25, 2025
Agent Licensed in AZ & UT
Every person is unique so the answer is that plans can save money under many circumstances...and occasionally when a Plan doesn't work for that client, then an Independent Broker can explain better options for the client.
In my opinion it depends on each individual client and their financial situation and generally speaking the older the client gets is when it can save more due to Medicare Supplement prices can increase annually and after several years can become very pricey where as Advantage plans many time have zero or very low premiums plus offer additional added benefits not offered by Supplements.
Medicare Supplements premiums go up every year and so do the drug cards. You pay that larger premium each year weather your sick or not.
On Medicare advantages, most of them premiums are No cost and you pay Copay as you use them. The Copays control the costs and the copays cap out each year. Less than 1% ever hit the max copay or max out of pocket on a Medicare advantage plan.
You may have a few bad years but not every year and over time Medicare advantages do save you money. Not just on premiums but they also have extra dental, Vision, hearing and over the counter items that Original Medicare does not.
Answered by Tasha Riggs on March 27, 2025
Broker Licensed in CO, AZ, HI & 10 other states
Yes. Because Medicare Advantage Plans do not have monthly premiums, they cover medical, prescriptions, dental, hearing, vision, and other benefits.
Answered by Michael Kim on March 25, 2025
Agent Licensed in NV, AR, AZ & 18 other states
Medicare Advantage plans can potentially save seniors money in the long run, but the impact varies by individual circumstances. They often have lower premiums and may include additional benefits not covered by Original Medicare, such as vision and dental care. However, these plans might have higher out-of-pocket costs for certain services and often require members to use a specific network of providers. It’s important for you to evaluate their healthcare needs and compare costs before choosing a plan.
Answered by Sean Davis on March 26, 2025
Broker Licensed in NY, LA, MD & 6 other states
This is a trick question. As brokers, we can not predict the future. If you have a healthy year and used your extra benefits built into your advantage plan, then yes, you could save money. However, if you have a bad year of health issues, then you could possibly be paying more out of pocket. At the end of the day, you do have a Maximum-Out-Of-Pocket that will put a cap on your out of pocket cost for the calendar year.
You can save money with Medicare Advantage in most situations. However if you are in need of Part B drug treatment long term, Medicare Advantage can be more expensive than straight Medicare and a supplement. Also if you take expensive prescriptions you need to be careful, as well.
Answered by David Silver on March 26, 2025
Agent Licensed in FL, NJ & NV
They can save you money short term — and long term if you stay healthy. But it’s a gamble. If you get sick, out-of-pocket costs and network limits can add up fast.
Answered by Brian Krantz on March 25, 2025
Broker Licensed in NY, AK, AL & 48 other states
Medicare Advantage plans have an incentive to focus on preventive care, especially for chronic conditions, which can prevent big events from happening - such as hospitalization which costs more. Preventing hospitalization saves more than just money, as it adds to the quality of life for clients.
Answered by Aisha Saleem on March 17, 2025
Agent Licensed in MD & FL
I believe that it depends on the coverage and their needs. Some plans are better than others. It is a very personal decision.
Answered by Debra Weber on March 25, 2025
Broker Licensed in PA, DE, FL & 5 other states
Tags:
Advice for Seniors
Medicare Advantage
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