How Do Medicare Part C (Medicare Advantage) Managed Care Plans Work?

Many people find a Medicare Part C managed care plan a good alternative to traditional Medicare Part A and Part B coverage. In addition to providing the same coverage as Parts A and B, a Medicare Part C plan also provides some of the extra coverage of a medigap insurance policy. Medicare Part C managed care coverage is provided by private insurance companies through what are known as Medicare Advantage plans.

Why look at managed care plans? The main benefit is cost. Total out-of-pocket expenses with a Medicare Part C plan are usually lower than with traditional Medicare Parts A and B plus a medigap insurance policy. The other benefit is usually slightly broader coverage than regular Medicare provides.

The main disadvantage of a Medicare Part C Advantage plan is that the choice of doctors and other healthcare providers is limited. Other restrictions on access to care may apply as well. Finally, a Medicare Part C plan can drop out of a geographic area at any time, leaving enrollees with only a few options for switching coverage.