I Used to Think Medicare Advantage Was the Best Healthcare Option in Retirement. Here's Why I've Changed My Mind.

As someone who writes about retirement on a regular basis, I'm well aware that healthcare is an important expense to plan and save for. I also know that even once Medicare kicks in, the costs retirees face for healthcare bills can be huge. For this reason, I used to be a big plan of signing up for Medicare Advantage.

Medicare Advantage plans are offered by private insurers as an alternative to original Medicare. And they offer a few key perks.

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First, Medicare Advantage plans commonly offer supplemental benefits beyond what original Medicare covers. Original Medicare, for example, won't pay for dental care, eye exams, or hearing aids, whereas many Medicare Advantage plans will. The savings alone from that added coverage could be huge.

Medicare Advantage plans also put a cap on annual out-of-pocket spending. With original Medicare, there's no yearly out-of-pocket maximum.

For these reasons, I used to think Medicare Advantage was the best option for retirees as far as health coverage goes. But here's why I've since changed my tune.

Medicare Advantage has restrictions

While Medicare Advantage certainly has its perks, these plans tend to come with strict rules that could make it harder for enrollees to get the care they need.

First, it's common for Medicare Advantage plans to require prior authorization for diagnostic services and treatments. That added step can not only create an administrative burden, but cause a delay in care, leading to potentially worse outcomes for patients.

And even in situations when a delay in care isn't catastrophic, it can still be stressful. Who wants to deal with having to go back and forth with an insurer when you're trying to get treated for a disease or injury?

Another issue with Medicare Advantage plans is that they limit enrollees to specific provider networks. Going outside your plan's network could mean having to pay a small fortune for care. But being stuck within a given network could mean having to forgo access to the providers you know and trust.

Now, let's compare these rules to original Medicare. While original Medicare does require prior authorization for some services, it generally doesn't mandate it for most diagnostic services and treatments.

Also, with original Medicare, enrollees can see any provider in the country who accepts Medicare as insurance. That means you can effectively use your benefits anywhere in the U.S.

Do your research before making your choice

For some people, Medicare Advantage may be a good fit. You may find that your overall costs are cheaper if you don't have a lot of health issues and you sign up for a low- or no-premium plan. But before you decide that Medicare Advantage is right for you, take the time to understand the pitfalls involved.

Trust me when I say I understand why Medicare Advantage might seem like the more appealing option when it comes to getting healthcare at or after age 65. But when you dig deeper like I did, you may realize that Medicare Advantage plans have major flaws that could make it harder to get the care you need. And you may come to the conclusion that original Medicare is a better choice.

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