Which entity typically funds Medicare Advantage Plans?

Medicare Advantage Plans, also known as Part C, are primarily funded by private insurance companies. These plans are required to provide at least the same level of coverage as Original Medicare (Parts A and B), but they often include additional benefits such as vision, dental, and wellness programs. The federal government pays a fixed amount to these private insurers for each enrolled participant, which enables the companies to organize and manage the health care of their members efficiently.

While Medicare does play a key role in overseeing these plans and setting certain regulations, it is the private insurance companies that actually administer the plans and bear the financial risk. This model allows for a variety of plan options in different geographic areas, providing beneficiaries with choices tailored to their healthcare needs.