Medicare Advantage (MA) plans contract with Medicare on an annual basis. Medicare pays each MA plan a fixed monthly amount for each member. This amount varies by county and is readjusted each year based on a Medicare formula. In turn, the MA plan must provide, at minimum, all Medicare-covered services. The MA plan may also offer additional services not covered by Medicare, such as preventive care, hearing aids, dental care and eye exams. These additional services vary by geographic area.
MA plans can charge a monthly premium, which varies by region. The cost in 2010 ranges from $0 to $203 per month. Most MA plans also require a copayment for services, such as doctor visits. In addition, if you have an MA plan, you will continue to pay the Medicare Part B monthly premium.
Many MA plans offer prescription drug coverage. These plans are often referred to as MA-PDs. If you enroll in an MA-PD, you do not need to enroll in a stand-alone Prescription Drug Plan (PDP).
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