How Is Medicare Advantage Funded?
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2 responses to “How Is Medicare Advantage Funded?”
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When you go on a Medicare Advantage plan, you are opting out of Medicare a & b for the time you are enrolled in the Part C Advantage Plan. Since Medicare does not have the liability of insuring you, they pay most of your premium for you. It’s estimated that they pay around $800 monthly to the insurance company that you choose. You pay little or no premium to the company plus your Part B premium.
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As you may know, there are many advantage plans with extremely low premiums, which makes this a popular question. Medicare advantage plans are actually funded by medicare, which was funded originally by taxes taken from your paycheck and monthly part B premiums. When you join an advantage plan, you transfer these payments to the advantage plan.
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