Many people with very limited incomes have enjoyed the opportunity to use OTC cards to help pay for over-the-counter drugs and utilities. There is considerable debate about whether this should continue in the future and whether it should be withdrawn from the Medicare system and transferred to the Medicaid system. Medicare Advantage plans are very beneficial in many ways, but they do come with their pros and cons and should be carefully analyzed before making a decision to go down that path.
Medicare spending crossed the $1 trillion threshold, with a significant 52% of this now going towards Medicare Advantage plans, up from 39% in 2019, indicating a shift in how care delivery and financing are evolving.
Since 2004, as Medicare Advantage has evolved, we have seen more and more extra benefits added to the plans. Dental, vision, hearing, gym memberships and over-the-counter credits are the most notable. All money spent by the plans to care for their members. Additionally, they are well accepted by doctors and facilities.
The biggest changes I've seen in Medicare advantage plans is with the extra benefits. Dental, vision, OTC, fitness benefits have expanded or been added over the years.
The dental and hearing benefits are underused. It caused many insurance companies to not only reduce benefits but also reduce other benefits like otc spend with restrictions.
A notable shift in Medicare spending has been the increasing enrollment in Medicare Advantage plans, which typically showcase a trend of higher spending per beneficiary compared to Original Medicare. This growth reflects a preference among many beneficiaries for the additional benefits, such as vision and dental coverage, that Medicare Advantage plans often offer. Additionally, while Medicare Advantage plans may initially seem cost-effective due to lower premiums, the overall spending on healthcare services, including potential out-of-pocket costs, has been rising. This shift highlights the need for continuous evaluation of how these plans align with beneficiaries healthcare needs and financial situations.
Medicare Advantage plans have evolved over the last several years. Most of them are now PPOs, which means you can go to doctors not in the network. They’ve added benefits that Medicare does not cover like dental coverage, eyeglass coverage, over-the-counter items, even hearing aids. And majority of the seniors or people on Medicare now has this type of coverage
spending on these plans significantly increasing as a percentage of total Medicare spending. ith Medicare Advantage enrollment growing rapidly and representing a larger portion of Medicare spending than traditional Medicare. Furthermore, Medicare Advantage plans are, on average, paid more per beneficiary than traditional Medicare.
