Basics of Medicare Advantage Plans
Medicare Advantage Plans are alternatives to Original Medicare. They offer the same coverage as Medicare Parts A and B, plus additional bonuses for an extra monthly premium. There are multiple types of Medicare Advantage Plans. The two most well-known are the Preferred Provider Organization (PPO) and Health Maintenance Organization (HMO) plans. Each type of plan has pros and cons. Take a look below to learn more about PPOs.
A PPO is a type of insurance plan that emphasizes flexibility and thorough coverage in exchange for a higher monthly premium. It is not specific to Medicare. Many different insurance models use the PPO model. A PPO works like this: insurance companies make agreements with preferred providers. These preferred providers will provide your care at a specific rate. You can still get care outside of these providers, called your network, but you will have to pay more in exchange.