Thursday, March 28, 2013

Medicare Advantage Cuts - The Big Lie

Medicare Advantage cuts are coming. There is no debate about that. A combination of Obamacare cuts and CMS directives means less funding for Medicare Advantage plans in 2013.

Seniors on Medicare will have fewer choices. Medicare Advantage plan premiums will be higherCopay's, deductibles and out of pocket maximums will all increase due to Medicare Advantage cuts.

So where is the lie?

For many, Medicare Advantage plans cost you more than original Medicare and a good Medicare supplement plan.

Medicare Advantage plans are fine . . . until your health changes.

Then you pay, and pay, and pay. In some cases as much as $6700 out of YOUR pocket over the course of a year. If you have a Medicare Advantage HMO plan there really is no cap on your out of pocket expenses.

If your illness or injury spans more than one calendar year your out of pocket will continue to climb, possibly wiping out your life savings or forcing you to file bankruptcy.

Even Medicare Advantage PPO plans can result in you spending over $12,000 out of your own pocket for health care.

The relatively tiny premiums paid for Medicare Advantage plans are nothing compared to the THOUSANDS you will pay out of your savings when your health changes.

For just a few dollars more than most pay for a Medicare Advantage plan you could own a Medicare supplement insurance plan N and have much less out of pocket exposure than you will have under a Medicare Advantage plan.

When the 2013 Medicare Advantage cuts kick in, your maximum out of pocket will soar with higher monthly premiums, higher copay's, higher deductibles and higher out of pocket maximums.

If you are on a really tight budget, Medicare supplement plan F with a high deductible is a good choice.

Most of us are old enough to remember the Fram oil filter commercial where you are told "You can pay me now, or pay me later".

Medicare Advantage plans are the pay me later design.

Medicare Advantage cuts are coming. Get out now while you still can.
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