“Little did I know” is a statement we don’t like to hear when it comes to Medicare.
We frequently hear horror stories about how people were sold Medicare Advantage plans and how they weren’t right for them and little did they know, they didn’t cost “$0” like they thought they would.
Medicare Advantage plans can sound pretty perfect and affordable when advertisements tag them with phrases like “zero premium” or “no monthly cost”. They can also come with additions like Silver Sneakers and include vision and dental.
In this blog post, I want to get clear about how Medicare Advantage plans work and what they can cost you.
To start, there are two Medicare programs to pick from and paths to go down when it comes to Medicare.
There’s Original Medicare on one side, where you have your Medicare supplement (Medigap) and your Medicare Part D plan.
Then there’s Medicare Advantage.
William recently asked me a question during my free online workshop, that if he chooses a Medicare Advantage plan, does he still have to pay the Medicare Part B monthly rate.
The answer is yes! There is no way around the Medicare Part B monthly rate. No matter if you choose Original Medicare or Medicare Advantage, you still have to pay the $148.50, which is the monthly rate for 2021.
This is where a lot of people are misled. They believe that because they choose Medicare Advantage that they don’t have to pay the $148.50. This is not the case.
There are some exceptions to paying the Medicare Part B premium, like being on Medicaid, but most people ending up paying it.
So then, what does Medicare Advantage cost you?
As I said previously, many Medicare Advantage advertisements talk about “zero monthly premiums”, free gym memberships, free dental or vision, things like that. Is that true?
Yes, some Medicare Advantage plans can have a zero premium. But here is what you need to know:
- You still have to pay the monthly Medicare Part B premium.
- Medicare Advantage plans also have co-pays and can have out-of-pocket costs up to $7,000 for just in-network doctors.
- Medicare Advantage plans can get even more expensive when you get sick.
- Due to Medicare insurability rules in most states, you can’t just switch Medicare plans whenever you want.
That is why my recommendation is to not pick a Medicare plan because it says it’s a “zero premium” plan or has things included like a gym membership, vision and dental. More often than not, the other costs that come with Medicare Advantage plans can be very costly and jeopardize your retirement savings.
Be sure you look into ALL Medicare plans and read the fine print and the details. Compare costs and coverage. Make sure your doctors accept the plan you’re considering. Make sure that the plan is in your best interest.
