Earlier today a client prospect asked me a question, “Why should I choose a Medicare Advantage plan over a Medicare Supplement.” Inevitably, the question is followed with, “My friends told me to avoid a Medicare Advantage. They aren’t any good.” Hmm… Interesting. Someone made a negative comment and that was deemed to be conclusive.
Over the past two decades I’ve had hundreds of clients, perhaps over a thousand clients, tell me they love their Medicare Advantage plan. My wife and I are two of those who are happy with our Advantage plans. There are of course some who have had a bad experience with their Medicare Advantage plan, and these bad experiences somehow get circulated as Medicare gospel.
The fact is, there is not one plan option, (Medicare Advantage or Medicare Supplement) or one company, that I’ve not had a client express dissatisfaction with. So how do you balance these opposing options? How do you decide?
If you’ve known me for any length of time, you’ve probably heard me say two things. One is, “I am a tightwad”. The second is my simple lifetime philosophy, “All life is, is trade outs”. Healthcare is going to cost you something one way or the other.
You will either have a premium, which you pay whether you seek medical care or not, or you will have no premium, but will have copays when you seek medical care.
So, here’s the bottom line. An article in Becker’s Payer Issue quantifies the question with facts, not emotional experiences. It was from an analysis commissioned by the Better Medicare Alliance and published on June 10th. This analysis reported that on average, Medicare Advantage beneficiaries save over $2500 in healthcare costs annually. That’s enough to make almost any tightwad happy.
Additionally, the analysis studied different ethnicities. Whether white, black, Asian or Hispanic, everyone saved money. It also studied varying income levels and the findings are the same. Medicare Advantage saves beneficiaries money.
So, what did I tell the gentleman visiting my office earlier today? I told him what I tell everyone: “I’ll teach you the pros and cons of Medicare Advantage plans and of Medicare Supplements. But you must pick the path that gives you the best piece of mind. However, if you want the best chance to save money, I recommend a Medicare Advantage plan.”
In subsequent blogs I’ll address the pros and cons further. If you need to reach a conclusion now, contact our office in Noblesville by calling 317-606-5426, and we’ll help you sort through your options to find the plan that fits YOU best.