Approximately half of all Medicare beneficiaries are now enrolled in Medicare Advantage plans. Why does this matter?
Traditional insurers (for example, United & Blue Cross) run Medicare Advantage (MA) plans. The federal government pays the insurers. This is different from Traditional Medicare which the Federal Government both funds and runs.
MA plans may include prescription drug, vision, and dental care. They also often include out-of-pocket caps.
MA plans may limit flexibility in provider choice with in-network and out-of-network provisions.
So far, MA costs the federal government more than traditional Medicare.
