4 Types of Medicare Advantage Plans
When choosing a Medicare Advantage plan, it's important to understand the different forms that these policies can take. Your costs and experiences when getting medical treatment will vary wildly depending on the type of Medicare Advantage plan you have. Here are the most common types of plans that may be available in your area.
An HMO is a network of doctors, hospitals, and other healthcare professionals. The members of this network contract with the HMO insurance company to provide service at a discounted rate; in return, the insurance company requires policyholders to stick with members of the network when getting medical care. Because of this contract, HMOs tend to be cheaper than most other forms of health insurance.
Most HMOs won't provide any coverage for out-of-network healthcare services except in an emergency. A few may allow you to go out-of-network for certain services, although at a higher cost to you -- this is called a point of service (POS) option. HMOs also generally require you to get a referral from your primary care physician in order to see a specialist.
Source: Fool.com
