When people talk about Medicare Part C or Medicare Advantage insurance plans in Omaha, Nebraska, they are usually making a comparison. The comparison is generally to Original Medicare and a Medicare Supplement with Part D. These are the two main ways most people get their Medicare. These two ways are very different, and I don’t believe it is really possible to make a legitimate comparison. But, as we used to say as kids, everyone does it. So let’s do it.
Medicare Advantage Insurance Plans in Omaha Nebraska vs. Medigap
The principal reason I don’t believe you can compare Medicare Supplements to Medicare Advantage is that Medicare Supplements are the same across the country. A Plan G in Arizona is the same as a Plan G in Maine. Medicare Advantage, however, is different from state to state and even from county to county. So I will compare Medicare Advantage insurance plans in Omaha, Nebraska, to Medicare Supplements here.
Low-Cost Medicare Advantage Plans in Nebraska
Price is the main attraction for many of my thousands of clients to Medicare Advantage (MA plan) in the Omaha Metro area. Most of the plans are no premium. A couple of them have minimal premiums, like $19, but the majority is zero. Clients like that, but they especially like the price in comparison to Medigap monthly premiums. A Plan G in this area for a male is approximately $150 per month on the low end. A drug plan could be $20 more or less. The simple math for a Plan G and a Part D prescription drug plan, including the Part B deductible, is around $2,200 a year. Most people do not spend anything close to that in annual copays on a MA plan.
Yes, one year or maybe two years, you might spend more than than a couple of thousand dollars on an MA plan, but over five, ten, fifteen years, most clients will pay out far less than the monthly Medigap premium that is constantly increasing with age and rate increases.
Medicare beneficiaries constantly compare notes, which is an excellent source of referrals for me. I had a young lady come in recently. Her son, a client, brought her to the office to save money on her Medigap policy. She was 96 and paying $500+ per month for her Medicare Supplement. We submitted an application for a lower-cost Medigap policy since she was in good health. She passed, and we saved her over $3,000 a year. The cost of many Medigap policies can get entirely out of hand.
An agent should have been helping her keep her costs down all this time, but regardless, people see the price of supplements. They look at Medicare Advantage insurance plans in Omaha, Nebraska, with no premium and very minimal copays, and they ask themselves, ‘Why?’
Why Pay Thousands of Dollars in Medigap Premium Each Year?
In the last analysis for most people, Medicare Advantage will result in less out-of-pocket costs than Original Medicare and a supplement and Part D plan in the long run. In the short run in most individual years, people will pay less with an MA plan. The general population recognizes this, which is why the continuous increase in enrollments throughout the country into MA plans.
Medicare Advantage Insurance Plans in Omaha Nebraska Maximum Out-of-Pocket
The downside of MA plans is when someone is seriously ill. One of my clients, a high school math teacher, developed Leukemia, and the treatment was costly. The illness and treatment began in the fall. He hit his maximum out-of-pocket at that time, which was $4,900. The following year the treatments continued, and he reached the maximum out-of-pocket again. Dan was not happy about being on a Medicare Advantage plan. His cancer appeared a year after he started on the plan.
We discussed switching to a supplement once his cancer went into remission. I waited two years and called Dan to do a supplement. Medigap plans usually have a two-year requirement of being cancer-free. When we talked, he had decided to stay with the MA plan. He saw how over time, it saved him money. It must have been the math teacher in him. I was surprised, and I reminded him how upset he was a couple of years ago. He assured me that he was ok remaining on the plan, and he reminded me how emotional cancer can be.
I always remind people the maximum out of pocket is an actual number. The chances of one hitting that number at some point are real. I highly encourage clients to save the money they would otherwise spend on monthly premiums to offset the cost of copays and a challenging year.
Doctor Networks In Medicare Advantage Programs
Yesterday, I met with a lady who told me, “I don’t want a plan that tells me what doctors to see.” When I hear that phrase, I know they have listened to a Medicare Supplement advertisement or someone on YouTube deriding the evils of Medicare Advantage.
Medicare Advantage plans have networks just like the employer health plans most people were on most of their lives. Insurance companies develop networks for the purpose of keeping prices down.
As I said earlier, MA plans are local plans. They design the MA plan around a particular area, and the networks are no different. In the Omaha Metro area, which includes Lincoln, Bellevue, and Council Bluffs and all the small towns surrounding, there are three networks. Virtually every health professional in the area is associated with one or all of these networks. There are a couple of independent hospitals, but they also affiliate with the local MA plans. In our area, there is absolutely no issue, and the networks and plans are going nowhere. These local plans and networks have been working together for years.
In other places, like Kansas City, where I have clients, the MA network criticism has some merit. I carefully check and double-check doctors and hospitals in that area because it is not as homogeneous as the Omaha Metro area. Of course, Kansas City Metro is much more significant in terms of population and area. With 35 MA plans in Kansas Metro, finding the doctors and hospitals you prefer is not hard.
National Networks And PPO Plans
But the network issue is actually becoming muter as MA plans develop and grow. Many of the insurance companies that offer MA plans also have national networks. With some plans, even HMO plans, clients may access doctors and hospitals across the country and pay in-network prices.
For a while now, the insurance companies have included PPO (Preferred Provider Organization) plans. With a PPO plan, you have the in-network providers, like an HMO. Those doctors and medical facilities are at the lower in-network copays. The doctors and medical facilities not in-network cost a little more and have a higher total maximum out-of-pocket. As long as the doctor and hospital take Original Medicare, they will accept the PPO plan. Either way, this issue is more and more becoming a non-issue.
I also try to bring people back to reality. I ask, ‘How many times in your lifetime or your family have you left your area to go to a doctor or hospital over a hundred miles away?’ The reality for most people is zero. Sometimes the emotional sales language of the Medigap only insurance agents can cause a disconnect.
Medicare Advantage plans manage care like your employer’s health plans. The insurance company monitors the treatment you receive to make sure it is within customary standards of treatment. If not, the insurance company will question the requests. So the insurance company must approve a majority of the procedures before they are performed.
Original Medicare does not manage care in the same way. Providers must meet the same standard of care, but there is no thorough review or preapproval process.
Ironically in the same turn, Medicare hammers hard on the subject of Medicare fraud. CMS (Center For Medicare & Medicaid Services) encourages Medicare beneficiaries or whistle-blowers to report waste, fraud, and abuse, but they do not have the same preapproval process that would significantly reduce waste, fraud, and abuse.
How To Stop Waste, Fraud, & Abuse?
Fraud is fairly self-explanatory. It is financial gain through deception, but waste and abuse are what the insurance companies try to avoid through their managed care practices. Doctors will sometimes overprescribe. They recommend treatments that are more–and consequently more expensive–than is customary and necessary. For example, the doctor recommends an MRI for a shoulder problem instead of physical therapy to handle the issue. You might say to yourself that it’s up to the doctor, but there are customary and standard procedures of diagnosis and treatment. What would prevent a doctor from ordering a whole list of tests and procedures because he wants to be extra special careful.
An MRI is much more expensive than a couple of visits to the physical therapist that may solve the problem. If the physical therapist concludes the treatment does not resolve the issue, then the treatment moves to the next level, which may be getting an MRI at that point.
Some people may like that more liberal approach to health care. Original Medicare and a Medigap policy will be a good fit. For those who are not concerned about the insurance company managing the care, as you experienced during your working years, then managed care or MA plans are a good fit.
Dental, Vision, Hearing, & More In Medicare Advantage Plans In Omaha, NE
The feature that is a big attraction for MA plans is the additional benefits, such as dental, vision, fitness membership, etc. Original Medicare does not cover dental or vision in the form of eyeglasses. Those are benefits seniors want and do not want to pay an additional premium for a dental & vision plan.
The Medicare Advantage insurance plans in Omaha, Nebraska have those benefits in varying amounts–teeth cleanings, $1,500 toward crowns & root canals, $300 for eyeglasses. The fitness memberships are attractive because it cannot only save a member $500 in gym fees annually, but it also gives them the flexibility to go to multiple gyms.
Part C or Medicare Advantage reduces the monthly cost for health coverage, provides broad access to doctors and hospitals, adds additional benefits at little or no cost. For Medicare Advantage insurance plans in Omaha, Nebraska, the disadvantages that are problems in other places are not really issues here.
For those who do not wish to be on the hook for medical bills that may exceed $3,000 or $4,000 in a given year, MA plans may not be the best fit. If there is some concern that an insurance company may have more control over the management of their health care than Medicare itself, Original Medicare may be a better choice.