Under attained-age pricing, Medicare costs and the price you pay for your Medicare Supplement plan is based on your current age, or the age that you “attained” the policy. Unlike plans based on community-rated pricing or issue-age pricing, your premium goes up as you get older.
Kaiser Permanente's Medicare Advantage plans score above all other major Medicare Advantage providers in terms of Medicare star ratings. Kaiser Permanente earned 844 points out of 1,000 in J.D. Power's 2022 Medicare Advantage Study, netting it the top spot for customer satisfaction out of nine providers measured.
Attained-age-plan premiums increase as you get older, but also with inflation and for other reasons. Issue-age-rated Medigap plans have higher premiums if you join when you're older. These plans are less expensive if you join when you're younger, but premiums may still be higher than attained-age for younger ages.
Medicare Supplement Plan G is the best overall plan that provides the most coverage for seniors and Medicare enrollees. Plan G will cover almost everything except the Medicare Part B deductible, which is only $226 for 2023.
The average Medicare Supplement Plan G rate increase is between 2% to 6% annually. Remember, this percentage can be higher or lower based on your carrier. Understanding the rate increase history for the carrier you choose to enroll is essential.
Top 3 Reasons People leave Medicare Advantage plans:
Unhappy with the additional benefits. A limited network of doctors. Unreasonable cost-sharing.
Medicare benefits generally don't change very much year to year. This means most of what is covered in 2023 was also covered in 2022, the year before that, and so forth. What may change from year to year is the amount you pay in premiums, deductibles, and copayments/coinsurance.
Yes, you can elect to switch to traditional Medicare from your Medicare Advantage plan during the Medicare Open Enrollment period, which runs from October 15 to December 7 each year. Your coverage under traditional Medicare will begin January 1 of the following year.
Medicare Advantage beneficiaries are extremely satisfied with their health care coverage. 98% of beneficiaries say they are satisfied with their Medicare Advantage plan, and 97% express satisfaction with their network of physicians, hospitals and specialists.
AARP/UnitedHealthcare is the most popular Medicare Advantage provider with 28% of all enrollment. Plans are well-rated and have affordable premiums and add-on benefits, a valuable combination that could account for AARP/UHC having the largest number of Medicare Advantage enrollees.
Medicare Advantage Members Save Over $1,600 On Care
The combination of better benefits and better care for MA members means that the average MA member saves more than $1,600 a year on personal health care costs, as compared to traditional Medicare enrollees.
Advantage plans are heavily advertised because of how they are funded. These plans' premiums are low or nonexistent because Medicare pays the carrier whenever someone enrolls. It benefits insurance companies to encourage enrollment in Advantage plans because of the money they receive from Medicare.
The main reason why Medicare Advantage carriers can offer low to zero-dollar monthly premium plans is that Medicare pays the private companies providing the plans to take on your health risk. But not all Medicare Advantage plans have a low premium cost.
While most Medicare enrollees do not pay a monthly premium for Part A, which covers inpatient hospital, skilled nursing facility, hospice and some home health care services, a deductible is charged for each hospital stay. For 2023, the Part A deductible will be $1,600 per stay, an increase of $44 from 2022.
Medicare Advantage changes for 2023
On average, Medicare enrollees will pay $18 per month for Medicare Advantage in 2023, a decrease from $19 per month in 2022. Five major Medicare Advantage insurers all plan to expand into new states and counties in 2023.
It is clear from Wakely's study that rather than being more expensive than original Medicare, MA is actually significantly less expensive, even accounting for all the extra benefits and services the program provides.
The average premium for Medicare Advantage plans will be lower in 2022 at $19 per month, compared to $21.22 in 2021, while projected enrollment continues to increase. As previously announced, the average 2022 premium for Part D coverage will be $33 per month, compared to $31.47 in 2021.
Forty-five percent of Medicare beneficiaries are enrolled in Medicare Advantage plans in 2022, a share that is projected to rise to more than 50 percent by 2025.
Premiums are the amount you pay each month out-of-pocket for your Medicare Advantage plan. The estimated average monthly MA plan premium for 2023 is $18, but this cost may vary significantly. Some plan premiums could be $0, while others could have premiums over $200.
Maine, South Carolina, New Mexico, Idaho, Missouri and Nevada have the lowest average monthly Medicare Advantage premiums in 2022, with all five states having average plan premiums of $42 or less per month.
As a Medicare enrollee, you can change Medigap plans at any time. As a result, there's no guarantee the carrier will accept your application if you try to switch outside your Medigap Open Enrollment Period. After your open enrollment window closes, you may need to go through medical underwriting.
If you're already in a Medicare Advantage plan and you want to switch to traditional Medicare, you should contact your current plan to cancel your enrollment and call 1-800-MEDICARE (1-800-633-4227). Note there are specific enrollment periods each year to do this.
The coverage offered by Medicare Advantage drug plans and stand-alone drug plans for beneficiaries in traditional Medicare varies across plans and from year to year. Plans can make changes that impact enrollees' premiums, out-of-pocket costs, access to medications, and provider and pharmacy networks.
Plans may have lower out-of-pocket costs than Original Medicare. Plans may offer some extra benefits that Original Medicare doesn't cover—like vision, hearing, and dental services. service area (for non-emergency care). Some plans offer non-emergency coverage out of network, but typically at a higher cost.