Generally, Medicare Advantage Plans replace hospital, outpatient, and prescription drug coverage in parts A and B of traditional Medicare. Most Medicare Advantage Plans also offer extra benefits, like vision, hearing, and dental care.

Some of these plans charge monthly and yearly premiums, deductibles, and copays that can add up. Others may not. Before choosing a plan, examine your past medical bills and benefits statements to get an idea of how much you’ve paid in the past year. That way, you’ll know what you could pay next year if something goes wrong.

Medicare Advantage Plans: How to Choose the Right One

Medicare Advantage Plans are usually paid a lump sum up front to manage their patients’ care, so they have an incentive to keep you healthy and out of the hospital. If they succeed, they come in under budget and make money. If they don’t, they lose money and could cut benefits or increase costs in future years.

Some Medicare Advantage Plans require enrollees to choose a primary care provider (PCP) who coordinates their care. Beneficiaries must often get their PCP’s permission or referral to see a specialist. Most plans set a yearly maximum out-of-pocket costs for in-network and out-of-network expenses.

Enrollees in Medicare Advantage Plans can change their plans during a Special Enrollment Period (SEP). SEPs are typically triggered by an event, such as: changing jobs, moving to another state, or turning 65. Individuals are allowed to switch plans during SEPs, and they can do so by giving their MA plan or Medicare Advantage organization a written notice or another approved method of election.