Final answer:
Medicare Advantage, or Part C, requires individuals to be eligible for Medicare Parts A and B and live in the service area of the chosen plan. Premiums vary by plan and in addition to any plan premium, the standard Part B premium must still be paid. Funding is through the Hospital Insurance and Supplementary Medical Insurance trust funds.
Step-by-step explanation:
Requirements and Premiums for Medicare Advantage
The requirements for enrolling in Medicare Advantage, also known as Medicare Part C, include being eligible for Medicare Parts A and B, which means you must be at least 65 years old or have certain disabilities. To be enrolled in Medicare Advantage, one must live in the service area of the Medicare Advantage plan they wish to join.
Medicare Advantage plans are offered by private insurance companies that contract with Medicare. These plans bundle Medicare Part A (hospital insurance) and Part B (medical insurance), often including additional benefits such as prescription drug coverage (Part D), dental, vision, and wellness programs.
The premiums for Medicare Advantage plans can vary widely depending on the specific plan, the benefits it offers, and the region it services.
Most people still need to pay the standard Part B premium in addition to any premium the Medicare Advantage plan may charge. Sometimes, the Medicare Advantage plan may have a $0 premium, but this does not mean the coverage is free as beneficiaries still have to pay for the Part B premium, deductibles, copayments, and coinsurance.
It's important to note that Medicare Advantage premiums are different than those of Original Medicare. Spending for Medicare was $692 billion in 2016 and is expected to grow due to increasing enrollment and rising healthcare costs.
The funding for Medicare Advantage comes through the Hospital Insurance and Supplementary Medical Insurance trust funds.