Medicare Advantage Organization

Acronym: MAO

Medicare Advantage (MA) Organizations (also known as Medicare Part C plans) are offered by private health insurance companies to provide Medicare benefits as an alternative to Medicare Parts A and B, and usually D. Part C enrollees are still required to pay their premiums for Part B and Part A (if applicable) coverage, but will not need to purchase Medigap coverage because of the expanded coverage offered by Advantage plans. The plan must provide all Part A and Part B services, and Part D coverage if prescription drug coverage is included in the plan. MA plans can provide this coverage in different ways, with varying costs and restrictions that can affect how and when you can get care. All MA plans must cover all services that Original Medicare covers. Medicare Advantage plans do not allow the purchase of a Medigap policy and will not allow an existing Medigap policy to be used to pay for the out-of-pocket expenses associated with the Medicare Advantage plan. Generally, Medicare Most Advantage plans will offer prescription drug coverage. However, if the Medicare Advantage Plan does not offer a drug prescription program or does not require drug purchases to be through the plan, then a separate Medicare Part D plan may be purchased. Medicare Advantage Organizations contract with Medicare to provide Medicare beneficiaries with all Part A, Part B, and oftentimes, Part D benefits. Medicare Advantage Plans include Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), Private Fee-for-Service Plans, Special Needs Plans, and Medicare Medical Savings Account Plans. If a Medicare beneficiary is enrolled in a Medicare Advantage Plan, Medicare services are covered through the plan and aren't paid for under Original Medicare. Most Medicare Advantage Plans offer prescription drug coverage.