What is Medicare Advantage (MA)?

• A. Private insurance alternative to traditional Medicare
• B. Insurer contracts with CMS to handle spending for Medicare
• C. Insurer also contracts with providers
• D. All of the above

Answer: (D)

Medicare Advantage is a private insurance option approved by CMS that serves as an alternative to traditional Medicare. These plans are offered by private insurers and contract with CMS to administer Medicare benefits, receiving a fixed per-person payment to cover the cost of Part A and Part B (and often Part D) services. At the same time, the insurer contracts with healthcare providers to create networks and negotiate payment arrangements for delivering those services. Because it combines private plan participation, CMS-structured funding, and provider networks, the description that includes all of these aspects best captures what Medicare Advantage is.