What Are Medicare Cost Plans and Where Are They Available?

Medicare cost plans are a type of Medicare health plan available in certain limited areas of the country. These plans are offered by private insurance companies that have contracts with the federal government. Medicare cost plans are hybrid Medicare plans that share features of both Medicare Advantage and Medigap supplemental insurance plans. They provide beneficiaries with access to a network of doctors, providers, clinics and hospitals, which helps keep costs low.

However, these plans are being phased out and are only available in certain rural areas of the country where Part C may be limited. When you enroll in a Medicare cost plan, you gain access to the plan's network of healthcare providers. However, the average cost of Medicare Advantage Plans (Part C), Medicare Prescription Drug Plans (Part D), and Medicare Supplement Insurance Plans (Medigap) can vary based on several factors, including where you live. Organizations that want to apply for a Medicare Advantage cost contract should download and complete the application below.

Unlike Medicare Advantage plans, a Medicare cost plan doesn't replace your original Medicare coverage. Instead, it works together with your original Medicare coverage to provide more benefits and flexibility. Many Medicare Advantage plans require you to see in-network doctors or allow the use of out-of-network doctors at a higher cost. However, if you leave your cost plan's network to receive covered care, your Original Medicare benefits will apply.

Organizations that have current Medicare cost contracts with CMS can download operational policy information and updates below. Aetna offers three different Medicare Part D plans, with offers available throughout the United States. In cases where the service area of the cost plan and the MA plans are in different MSAs, the MA enrollment will be based on the MSA where the actual competition occurs. Medicare cost plans offer additional benefits and benefits in addition to Original Medicare.

They are attractive plans as beneficiaries maintain their Original Medicare coverage and can visit out-of-network healthcare providers. However, these plans are being phased out so it is important to check if they are available in your area.

Elise Woehl
Elise Woehl

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