If you ever compare the rate of premium that you are paying for your Medicare Advantage Plans, with the rates paid by your friends and relatives, you are likely to find differences. Why such differences come up, even if 2 customers are enjoying the similar scope of benefits? Let’s find out the answers to this question.
The rate of premium varies with the scopes of and extent of coverage
The differences in the rate of premium payable for the Medicare Advantage plans, first and foremost, are for the differences in the extent and scopes of coverage that you enjoy. It is needless to say that if you have picked a plan that offers wider coverages than the plans that your friends or relatives have subscribed for, it is obvious that you will require paying premiums at higher rates. Hence, the additional money that you pay, basically fetches you some additional benefits.
Find More information at https://www.medicareadvantage2019.org
It is the discretion of the insurer to fix the rate of the premium
These plans basically come from the private insurance companies, having contracts with Medicare. These providers are having their respective ways of evaluating the extent of risk and calculate the amount of premium payable by the policy holders. Remember, Medicare has nothing to say about the rate that these companies decide and if you have to buy the policy from these providers, you have to abide by its terms and conditions and pricing. As such, it seems obvious that the cost of premiums will vary between providers.
You require making a note of the point that your provider has got the complete liberty to go out of the framework at any point of time, or the discretion to decide, if they would like to renew the contract with Medicare. If, your insurer is eventually moving out of the network, or not renewing the contract, you will have to look for a new company, and it is likely that the provider will have its own rates for the premiums.
In addition, your existing health conditions are likely to influence the rate of premium. For instance, if your general health is on the better sides, and the insurer feels that you have lesser chances of availing the services, it will probably charge premiums at lower rates. However, you can find the Zero Premium plans that give you the exemption of the need to pay any premiums for availing these coverages.