Private Medicare Benefits

Medicare beneficiaries may opt to obtain their Medicare benefits from a private company that offers Medicare Advantage plans, formerly known as Medicare+Choice, as opposed to a traditional Medicare plan from the federal government. Nearly one-third of individuals with access to private Medicare Advantage plans choose to enroll, primarily to take advantage of the extra benefits. The majority of Medicare Advantage plans are HMOs, followed by PPOs and Private Fee-for-Service plans.

Companies offering Medicare Advantage plans must meet beneficiaries’ health care needs efficiently, while maintaining their quality ratings in order to remain competitive. A one through five star rating system is used, with five stars denoting excellent performance,