There are four types of plans recognized under Medicare Advantage. These are PPO or Preferred Provider Organization Plans, MSA or Medical Savings Account Plans, HMO or Health Maintenance Organization Plans and PFFS, which stands for Private Fee For Service Plans. Each of these four plans offers different ways of providing coverage for beneficiaries.

PPO Plans provide a network of hospitals and physicians from which Medicare beneficiaries may choose. Those in this plan also have the option of choosing their own medical provider, even if he or she is not part of their network, for a higher fee. In addition, some PPO Plans provide prescription drug coverage as well.

MSA Plans have two different parts. One is a higher deductible plan and the other is a savings account. Medicare funds the savings account every year with the amount needed for coverage. This amount is typically less than your required deductible. Under this plan, you are not required to choose a PCP or primary care physician, although your plan may provide a list of preferred medical providers that offer services at a lower cost than your normal physician. Prescription drug coverage is not included in MSA Plans.

HMO Plans provide you with a network of doctors, much like PPO Plans. The difference is that with an HMO Plan, you are only allowed to choose a doctor that is listed within your network. You are also required to choose a PCP and a referral from this PCP is required in order for you to see a specialist. Some HMO Plans do offer prescription drug coverage.

PFFS Plans offer the most flexibility with regards to choosing doctors and hospitals. You are permitted to go to any doctor or hospital that is approved by Medicare. You are not required to choose a PCP under this plan or have a referral from a doctor in order to see a specialist. PFFS Plans have rates for hospitals and doctors that are determined ahead of time, as well as rates for co-pay you may incur. Some PFFS Plans do offer prescription drug coverage.

The cost of Medicare Advantage will depend on many factors. While you are required to pay a premium for Part B depending on your current income, Part C coverage premiums depend on the plan that you choose. Your chosen plan will have pre-determined co-pays and deductibles.

It is important to keep in mind that there may not be Medicare Advantage plans available in your area. It is also important to note that these plans may be canceled at any time by the company providing them, depending on whether or not that company is earning a profit. You should spend some time reviewing that plans that are available in your area and choose the one that will offer you the best options regarding coverage, physician choices and price.