How Medicare Advantage Works

Medicare Advantage (Part C) plans are offered by private insurers approved by Medicare. They take over administration of your Part A and Part B benefits and almost always add Part D drug coverage.

Most plans are HMO or PPO. HMOs require staying in-network and using a primary care physician. PPOs offer out-of-network coverage at higher cost-sharing.

Every plan has a Maximum Out-Of-Pocket (MOOP) — once you hit it, the plan pays 100% of covered services for the rest of the year. This is a major advantage over Original Medicare, which has no cap.