Medicare Advantage Premiums – Too High?
Will Medicare Advantage premiums increase in 2012? 
How much is too much? We have seen Medicare Advantage premiums increase year after year. 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) that begins October 15, 2011 and ens November 7, 2011 and compare 2012 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 $6700 maximum for 2011 Medicare Advantage plans.
If you are enrolled in original Medicare only for 2011, the Part A Medicare deductible is $1132 and covers hospitalization for the first 60 days. There are additional inpatient copays beyond that. In addition, should you stay with original Medicare you will also be subject to 20% of Medicare covered expenses.
So, if you choose to pocket the Medicare Advantage premiums by not choosing a Medicare Advantage Plan, you are potentially exposing yourself to some undetermined financial risk.
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 Annual Enrollment Period. Compare plans with a January 2012 effective date and submit an application beginning October 15, 2011 through December 7, 2011. You can start by looking at the Medicare and You publication, or visit Medicare’s official website to compare plans.
Don’t let the threat of high Medicare advantage premiums deter you from exploring your options.
If you cannot find a reasonably priced Medicare Advantage plan for 2012, 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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