Medicare Plans Plummet 1 Percent

Medicare health insurance premiums for Medicare Advantage plans are expected to dip about 1 percent in 2011. While premiums go down, medicare plans will offer more benefits as a result of recent health care reforms.

Medicare Plans Costs Limited

Under the new law, Medicare Advantage patients will have limited out-of-pocket expenses as well as a reduction in shared costs for expensive care such as chemotherapy and dialysis. The Centers for Medicare and Medicaid Services expect rates for Medicare Advantage plans to be 1 percent lower than 2010.

Yahoo News reports director of CMS Center for Medicare, Jonathan Blum, said about the Medicare plans, "This is still a very attractive marketplace for Medicare Advantage plans." Enrollment these type of plans is expected to grow 5 percent. Some companies will abandon these plans next year with around 5 percent of beneficiaries required to select a new provider.

Medicare Plans Premiums

The average monthly premium will go down to $35.69 next year from $36.14 in 2010. ABC News reports Health and Human Services Secretary Kathleen Sebelius indicated premium increases last year averaged 15 percent. Sebalius said, "Despite lots of predictions of doom and gloom, the Medicare Advantage program is stronger than ever before."

The bottom line is some seniors will see Medicare plans cost less and other will pay more. Blum said, "The plans know in advance what the law says for the future, and despite that they remain very strongly committed to the program. We believe that the program will be stronger and provide better value."

The new health care law will give seniors cost-free preventive care as of 2011 for beneficiaries of traditional Medicare as well as those who choose a private insurance plan.

Additionally, the new health care law provides seniors with cost-free preventive care starting next year. It will be available to all beneficiaries, whether they pick a private insurance plan or opt to stay in traditional Medicare.

Medicare Plans Info

Information about Medicare Advantage plans is available at the Medicare website. These Medicare plans are available in many areas. A Medigap policy is not required with Medicare Advantage plans as they are designed to cover costs such as co-payments and deductibles. Plans include Health Maintenance Organizations (HMO), Private Fee-for-Service Plans, Preferred Provider Organizations (PPO), Medicare Special Needs Plans and Medicare Medical Savings Account Plans (MSA).

Medicare Advantage plans may cover more services with lower costs than original Medicare plans. Some of the plans also cover prescription drugs. With some plans, participants may only be able to see certain doctors or go to certain hospitals for covered services.