Medicare Advantage

Medicare Advantage (Medicare Part C) is a type of health plan in the United States offered by private companies which was established by the Balanced Budget Act of 1997. This created a private insurance option that wraps around traditional Medicare. Medicare Advantage plans may fill some coverage gaps and offer alternative coverage options in an attempt to make them appear more attractive to the subscriber as compared to traditional Medicare.

Under Part C, Medicare pays a plan operator a fixed payment for each enrollee. The operator then pays for their medical expenses. Traditional Medicare directly compensates providers on a fee-for-service basis. Plans are offered by integrated health delivery systems, labor unions, non profit charities, and health insurance companies, which may limit enrollment to specific groups of people (such as union members).