More About Medicare Advantage Plans

Most MA plans are HMOs, with a network of practitioners.  If you wish to see someone outside the network, or in a state or city where the network has no practitioners, you’re out of luck. (Some MA policies are PPOs and will partially cover out-of-network practitioners, usually at a cost.)

MA policies must cover emergency care in out-of-state, non-network facilities, but “emergency” is narrowly defined.  For example, if you break a wrist, hip, or ankle while out of state, the initial emergency room response will be covered (minus co-pays and co-insurance).  But for follow-up care to be covered, you’ll have to return to your home city and see a network practitioner.

More importantly, MA plans recoup their costs through a schedule of co-pays and co-insurances.  These can add up quickly.  Co-pays for hospital stays will usually be over $250 per day for the first five to seven days of each hospitalization.  That’s in addition to co-pays for ambulance services, the emergency room doctor, other doctors, medical equipment, diagnostic tests, and on and on.  A few days in the hospital may cost as much as a year of Medigap premiums. (Of course, you may go many years without needing hospitalization and incurring these costs.)

An ad I received recently for a MA policy touted a long list of zeros:  zero premium, zero co-pay for regular medical appointments, zero co-pay for lab work, and finally, zero co-pay for “hospital stays (days 7-90).”  It didn’t mention that days 1-6 would cost $265 per day out-of-pocket.

Trying to compare MA policies is an exercise in frustration. In my county, there are fourteen HMO MA plans.  Each has a different schedule of hospital co-pays that differ both in the amount charged and the number of days a co-pay is required.  One plan charges $175 per day for the first seven days of hospitalization.  A three-day hospital stay would cost $525 while a seven-day stay would be $1050.  Another plan charges $350 per day for the first three days.  Both a three day and seven day stay would cost $1050. (And so on through fourteen sets of possibilities.)

And that’s just hospital co-pays.  Ambulance co-pays for the 14 plans go from a low of $100 to a high of $400.  Co-pays for specialist visits and rehab service differ as well.  Your yearly cost is unpredictable, depending on what services you use. A policy that’s a good deal given one set of circumstances may be a poor choice for a different set of circumstances.  Unless you can correctly predict what services you’ll need in a given year, selecting an MA policy is a shot in the dark.

You can change plans during Open Enrollment every year, but few people do, since their doctors and care team are associated with their plan.

 

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