Medicare: supplemental benefits

Just like every year, the costs of Parts A and B of the Medicare Advantage plans 2016 are set on basis of submitted bids which are proposed by the plan providers. In the year 2015, the average bid was recorded at 94 percent of cost of the Medicare facility which was being directly provided by the federal government. The Medicare Advantage plans use savings from this bidding to use them for “supplemental benefits” in order to lure enrollees. It is also a fact that  the standard amounts which are offered to  Medicare Advantage plans are placed a bit above than the identical fee-for-services cost quantity; furthermore,  Medicare Advantage plans have to face  extra Health Insurance Tax and also  indirect 30 to 50 percent taxes on  capital which is given back to enrollees in  additional benefits.  These can be found by going to http://www.medigapplansguide.com/medicare-supplement-plans-2019/ for more information.

Medicare Advantage plans are also bound to limit  per year out-of-pocket costs for  beneficiaries, and  maximum limit on that should not be any more than $6,700 – where around 56 percent of  enrollees lie in  plans which have maximum out-of-pocket costs less than $5,000. It has also been recorded that most of enrollees fall in category of those plans which have zero additional premiums; therefore, those people can receive core element of Medigap without any extra charges. So, if we place a similar limit on out-of-pocket costs for people who are not enrolled in Medicare Advantage plans, then it will charge an extra $380 billion for a 10-year budget window.

It is also a possibility to use public information of Centers for Medicare (MCS) data to understand extent, range, and availability of rest supplemental benefits. If we compare 2015 Medicare Advantage Contract Year Plan Benefits Package information with dataset of Enrollment by Plan, then it becomes very easy to analyze that how many enrollees are covered with a particular supplemental benefit. Not only that but also we can measure  limit to which  supplemental benefits are covered by  standard costs of  health insurance Advantage benefit, or just offered for a further premium.

So, supplemental benefits of a Medicare Advantage consist of services such as hearing, vision, and dental which attracts mostly sick people as compared to services like gym memberships which mostly attracts healthy people and this shows that these schemes are very well structured so that they can balance out perks for all sorts of people (healthy or not). Therefore, finding right type of plan seems to be a challenge but it is worth it if you complete that challenge.