Medicare Advantage is a type of Medicare health plan offered by a private company that contracts with Medicare to provide Part A (hospital insurance) and Part B (medical insurance) benefits.

Medicare Advantage Plans cover all Medicare services, but may also offer extra coverage.

How does Medicare Advantage work?

Medicare pays Medicare Advantage plans a per-enrollee amount to administer Part A and Part B benefits. Medicare also provides a separate payment for prescription drug benefits under Medicare Part D.