Medicare Advantage

Quick Definition: Medicare Advantage

Medicare Advantage (also known as Part C) is an alternative form of Medicare administered by private insurance companies that contract with the federal government to provide Medicare benefits. While it’s legally part of the Medicare program, it operates very differently—offering bundled coverage and extra perks, like dental, vision, or prescription drugs, but often with limited provider networks, stricter care approvals, and less flexibility than traditional, government-run Medicare.

Key Points:

• Privately run alternative: Despite its name, Medicare Advantage isn’t traditional Medicare—it’s an alternative administered by private insurers paid by the government to deliver Medicare benefits.
• Legally Part C: It is officially part of the Medicare program (known as “Part C”) but operates under different rules than the government-run system.
• Bundled coverage: Most plans combine hospital (Part A), medical (Part B), and often prescription (Part D) coverage into a single package.
• Extra perks, more limits: While plans may include added benefits like dental, vision, or hearing, they typically have narrower provider networks and require prior authorizations for many services.
• Appeal and risk: Medicare Advantage often looks cheaper upfront, but patients can face higher out-of-pocket costs and reduced flexibility when they get sick.

Learn more with a deep dive.