Medicare Advantage Plans in Alabama

Medicare Advantage provides a cost-effective way for seniors aged 65 or older and younger individuals with qualifying disabilities to get the health care coverage they need. Medicare Advantage plans, often referred to as MA plans or Medicare Part C, take the place of Original Medicare. These plans must provide the same coverage as traditional Medicare plans, but they often offer more perks than Original Medicare. The federal government offers Original Medicare to qualifying recipients, but Medicare-approved private insurance companies offer Medicare Advantage plans. Because MA plans bundle several types of health care coverage together, recipients often have lower out-of-pocket costs than they would with Original Medicare.

Alabama’s Medicare Advantage recipients have steadily grown, as they have nationwide. In 2020, the state had more than a million Medicare beneficiaries, and nearly 45% of them chose Medicare Advantage over Original Medicare. This percentage was significantly higher than the national average, which was 38% that year. In 2021, the rate of Medicare Advantage recipients had grown to nearly 50%. The percentage rose again to just over 54% of the 1,065,866 Medicare recipients recorded in Alabama during the 2022 plan year. The average monthly Medicare Advantage premium remained relatively unchanged, rising from $11.19 in 2021 to $11.21 in 2022, but the number of available plans increased from 82 to 91.

This guide provides a comprehensive overview of Medicare Advantage plans in Alabama, including how these plans work and what’s covered compared to Original Medicare. It also includes eligibility requirements, top providers in the state and how beneficiaries can find plans in their area.

The Top 10 Medicare Advantage Plans in Alabama

Seniors and disabled persons in Alabama potentially have access to several types of Medicare Advantage plans, with numerous insurance providers serving multiple areas of the state. The table below compares the top 10 most popular Medicare Advantage providers statewide based on their total MA plan enrollment. Because each provider typically has multiple plans available, the table calculated their total enrollment by combining the enrollment numbers of all the plans each provider offered. 

The table also provides a range of costs for the plans included in the enrollment totals to allow for cost comparisons. It includes the provider’s Medicare star rating to show how they ranked based on plan performance and feedback from member satisfaction surveys. The information used for this table is current as of April 2022. Medicare recipients can also visit Medicare.gov to get up-to-date information on the plans available in their area.

How Medicare Advantage Plans Work in Alabama

Depending on the insurance provider and the beneficiary’s geographic location in Alabama, they could have several MA plan options or just a handful. Since private insurers offer Medicare Advantage plans, their plans may be unique to the areas they serve or the intended recipients. There are four primary types of plans available in Alabama’s Medicare Advantage program. Health Maintenance Organizations (HMOs) are typically the most common, followed by Preferred Provider Organizations (PPOs). Private Fee-for-Service (PFFS) plans and Special Needs Plans (SNO) may have limited availability statewide.

What Medicare Advantage Plans Cover in Alabama

Medicare Advantage takes the place of Original Medicare, so MA plans must provide the same Medicare Part A and Part B coverage. Part A covers inpatient/hospital coverage, and Part B covers outpatient/doctor services. Most MA plans also cover Part D prescription drug coverage, which Original Medicare recipients must purchase separately. Even better, MA plans usually provide coverage for various additional perks such as vision care, wellness programs, hearing aids, telehealth and dental care. More than 90% of nationwide MA plans offered these and other health-related benefits in 2022.

*Select plans offer this coverage

** Most plans offer this coverage

Eligibility for Medicare Advantage in Alabama

Beneficiaries who qualify for Original Medicare also qualify for Medicare Advantage because the eligibility requirements are identical. Applicants must be aged 65 or older or younger if they have a disability that qualifies them at an earlier age. Disabled persons who’ve received Social Security Disability Insurance payments for two years or more qualify for Medicare. Individuals diagnosed with end-stage renal disease, also known as kidney failure, or Lou Gehrig’s disease, also known as ALS, qualify for Medicare Advantage, as well. 

To be eligible for Medicare Advantage in Alabama, applicants must have Medicare Parts A and B. They must also be U.S. citizens or authorized immigrants. If they’re applying for an SNP, they must meet additional plan requirements. Like Original Medicare, beneficiaries can only join a Medicare Advantage or switch an existing plan during specific enrollment periods. Those periods are detailed below.

• Initial Coverage Election Period: This is the initial 7-month period, coinciding with one’s 65th birthday, during which everyone is eligible to enroll in a Medicare Advantage plan.
• Annual Election Period (AEP): Also referred to as the Open Enrollment Period, this the time of year when anyone over 65 can enroll in Medicare Advantage for the first time or change to a new plan.
• Medicare Advantage Open Enrollment Period: During this period, those who are already enrolled in Medicare Advantage can switch to a different plan or switch back to Original Medicare.

Additionally, Medicare Advantage plan participants can change their plan outside of these enrollment periods under certain qualifying circumstances, such as moving to a new state.

State-Wide Medicare Advantage Resources

Local Medicare Advantage Resources