Is Medicare Advantage Really a Good Deal?

Barron's Retirement

By Elizabeth O'Brien | Sunday, January 19

Americans love a bargain. That can make us easy marks, though. We love something that's marketed as a deal, even when the actual experience suggests otherwise. Case in point: Medicare Advantage plans. A lot of these plans have $0 monthly premiums and freebies that traditional Medicare doesn't, like gym memberships and some dental and vision benefits.

Yet costs can add up quickly in these plans if you require more than basic preventive visits to the doctor. And the supplemental benefits don't save members much money, new research shows. From 2017 to 2021, Advantage beneficiaries paid 9% less out of pocket for eyeglasses than those on traditional Medicare and 9.3% less for dental visits, yet no less for hearing aids. That could be because some members don't know about them, or because the benefits are relatively limited in nature.

That's not to say that Medicare Advantage is never a good bet. But it's important to look beyond the marketing materials and read the fine print.

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