2010 Medicare Advantage Premiums
Medicare Advantage premiums increase in 2010
How much is too much? 2010 Medicare Advantage premiums have in several instances increased. Some of the premium increases make you wonder whether you would be better off taking your chances with original Medicare. If premiums are approaching $200 per month in some cases, would you not be better off putting the premiums in the bank and hoping for the best?
Although you may be tempted to take this course of action, the better alternative would be to take advantage of your Annual Enrollment Period (AEP) and compare 2010 Medicare Advantage Plans in your area.
Keeping saved premiums may make sense to you when you consider how much co-pays for providers will cost through out the year, but one Medicare Advantage benefit should deter you from this course of action.
Medicare Advantage out of pocket maximum
The out of pocket maximum is one benefit that many Medicare beneficiaries overlook. Annual out of pocket maximums range from the mid-two thousand dollar level to the upper four thousand dollar range.
For 2010 the Part A Medicare deductible will be $1100.00 to cover hospitalization for the first 60 days and of course, the 20% cost sharing for out-patient services will still be in effect.
So, if you choose to pocket the premiums you could save by not choosing a Medicare Advantage Plan, you are potentially exposing yourself to some undetermined financial risk. $1100.00 is $1100.00, but on the out-patient side; 20% of what? That’s right original medicare has no out of pocket maximum.
Better course of action
If you have decided that a Medicare Advantage Plan is right for you, it would be best to do your homework now while you are in the AEP. Take a look at your Medicare and You publication, or visit Medicare’s official website to compare plans.
If you cannot find a reasonably priced Medicare Advantage plan for 2010, then maybe you should consider a Medicare Supplement policy. You will pay a higher premium and will need to select a stand alone Part D prescription drug plan, but you will generally eliminate much of the cost sharing associated with a Medicare Advantage Plan.
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