I am confused why a government run program is able to be sold. Please explain like I am 5 how selling medicare is a thing. Why would a government run program need to be sold? Thanks
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Health Insurance plans do not sell Medicare, they sell Medicare Advantage. Medicare Advantage is the private version of Medicare which by default has to provide as much coverage as the government provided Medicare (or better).
The advantages to Medicare Advantage are that they typically offer lower cost shares than under traditional medicare and with added coverages that aren’t covered under medicare at all (Rx, over the counter drugs, dental, vision). The main disadvantage is that the way that in order to be able to get those savings typically they restrict the provider networks.
There are also Medicare Supplemental plans which really all they do is lower cost shares but they tend to cost a lot more than Medicare Advantage plans while not providing any additional coverage (no Rx coverage, etc). The main advantage of these is that you get the same network as Medicare with lower cost shares.
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