MEDICARE ADVANTAGE OPTIONS

ORIGINAL MEDICARE
 Original Medicare will always be available.  If you want to continue receiving your benefits this way, then you do not have to do anything. 

HMO
 This is a managed care plan with a network of providers who contract with an insurance company.  You choose a primary care physician who coordinates your care.  You agree to follow the rules of the HMO and use the HMO's providers.

HMO WITH POINT-OF-SERVICE (HMO W/POS)
 This is similar to the Medicare Advantage HMO, except you can use providers outside of the network.  However, you will pay higher deductibles and copayments when you go outside of the network.

PREFERRED PROVIDER ORGANIZATION (PPO)
 This is another managed care plan.  It is formed by a group of doctors, hospitals, and other providers who contract with an insurance company.  You do not have to choose a primary care physician.  You can go outside of the network, but you will pay higher deductibles and copayments when you do.

PROVIDER SPONSORED ORGANIZATION (PSO)
 This is a managed care plan with a network of providers.  The providers administer the plan and take the financial risk.  You choose a primary care physician and agree to use plan providers.  Most services will be provided by the network.

PRIVATE FEE FOR SERVICE PLANS (PFFS)
 This is an insurance plan, not a managed care plan.  The plan, not Medicare, sets the fee schedule for providers, but providers can bill up to 15% more.  You see any providers you choose, as long as the provider agrees to accept the payment schedule.  Medical necessity is determined by the plan.  The plan does not have to have a quality assurance program.

RELIGIOUS FRATERNAL BENEFIT SOCIETY PLANS
 This is one of the managed care plan types (HMO, HMO w/pos, PPO, PSO) which is formed by a religious or fraternal organization.  These plans may restrict enrollment to members of their organization.

MEDICAL SAVINGS ACCOUNTS (MSA)
 This is a health insurance policy with a high deductible ($3,000) combined with a savings account ($2,000). Medicare pays the insurance policy premium and deposits money into your MSA each month. You can use the money in your MSA to pay your medical costs (tax free). You have free choice of providers. The providers have no limit on what they charge.

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