Which statement is true regarding Medicare Advantage and its administration?

Medicare Advantage, also known as Medicare Part C, is administered by private health plans that are approved by Medicare. While Medicare itself is a federal program, the Advantage plans operate within the framework established by the federal guidelines but are managed by private insurance companies. These private plans are required to provide at least the same level of coverage as Original Medicare (Parts A and B), though many also offer additional benefits, such as vision, dental, and hearing coverage, or lower out-of-pocket costs.

The other statements present inaccuracies regarding Medicare Advantage. The assertion that it is exclusively managed by the federal government does not account for the role played by private health plans. Claiming that it has no outpatient benefits is misleading because many Medicare Advantage plans do include outpatient services as part of their offerings. Finally, stating that it covers only hospitalization costs is incorrect because, in addition to hospital stays, Medicare Advantage plans typically encompass a broader array of services, including outpatient care and preventive services. Thus, recognizing that private health plans administer Medicare Advantage is crucial for understanding its structure and function within the healthcare system.