Who is responsible for the administration of Medicare Advantage plans?

The administration of Medicare Advantage plans is primarily the responsibility of private insurance companies that are approved by Medicare. These companies design their own plans, set their own premiums, and determine which benefits to include, as long as they meet certain federal standards established by the Centers for Medicare & Medicaid Services (CMS). This structure allows for a variety of plan options that may cover additional services not included in original Medicare, such as dental, vision, and wellness programs, which are tailored to the needs of different populations.

In contrast, the federal government does not directly administer these plans; it establishes the regulatory framework within which the private insurers operate. While state health departments and local healthcare providers play crucial roles in healthcare delivery and oversight, they do not administer Medicare Advantage plans. Their functions often involve patient care and public health initiatives, which are distinct from the plan administration responsibilities attributed to private insurance companies.