Medicare Advantage or just Medicare?

It's annual registration season again. Here's a look at the pros and cons of both approaches to health insurance.

Sales pitches appear in your mailbox and inbox, in the automated calls and SMS. Ads target you on radio, TV and social media. Touting Medicare Advantage plans, these campaigns promise low premiums and all sorts of extra perks.

And they work. The proportion of eligible Medicare beneficiaries enrolled in Medicare Advantage plans, funded by federal dollars but offered by private insurance companies, reached 48%. By next year, the majority of beneficiaries will likely be enrolled in the Advantage plan.

The annual enrollment period is underway again. Starting last month and running through Dec. 7, beneficiaries can switch from traditional Medicare to Medicare Advantage or vice versa, or switch between Advantage plans. So now is a good time to look at the differences between these two approaches.

"It's a very big decision, and the most important thing is to be informed" , said Jeannie Fuglesten Biniek, senior policy analyst at the Kaiser Family Foundation and co-author of a recent literature review comparing Advantage and traditional health insurance.

A key finding, Dr. Biniek said, "Medicare Advantage beneficiaries and traditional Medicare beneficiaries said they were satisfied with their care - a large majority in both groups."

< p class="css-at9mc1 evys1bk0">In reviewing 62 published studies, researchers found that Advantage plans performed better on a few measures. For example, beneficiaries were more likely to use preventive services such as annual wellness visit and flu and pneumonia vaccinations. Benefit recipients were also more likely to say they had a doctor, a "usual source of care." if they had additional Medigap policies, but would compound affordability issues if they did not. And they were more likely to use high-quality hospitals and nursing homes.

None of these differences, however, prompted shopping or switch from one program to another in one direction or the other. (Dozens of lawsuits accusing some Medicare Advantage insurers of fraudulently inflating their benefits apparently haven't made much difference to consumers either.) can compare them to find the best individual coverage. But in 2020, only three in 10 Medicare beneficiaries compared their current plans with others, according to a Kaiser Family Foundation survey.

Even fewer beneficiaries have changed plans, which may reflect consumer satisfaction or the daunting task of trying to weigh up the pros and cons. This year, the average beneficiary can choose from 38 Advantage plans, reports the Commonwealth Fund.

Yet Medicare Advantage and Traditional Medicare, also known as Original or fee-for-service Medicare works quite differently, and the health and financial consequences can be dramatic.

Advantage plans offer simplicity. "It's a one-stop shop," Dr Biniek said. "You get your drug plan included and you don't need a separate supplemental policy," the type traditional Medicare beneficiaries often buy.

Medicare Advantage may seem cheaper because many plans charge low or no monthly premiums. Unlike traditional Medicare, Advantage plans