What does "network" mean in the context of Medicare Advantage plans?

In the context of Medicare Advantage plans, "network" refers to the specific group of healthcare providers—such as doctors, hospitals, and specialists—that the plan has contracts with to deliver services to its members. When beneficiaries choose a Medicare Advantage plan, they often receive the most comprehensive benefits, including lower out-of-pocket costs, when they use providers that are in the plan’s network.

This network structure is fundamental as it helps to control costs for the insurance company while ensuring that members have access to coordinated care. Each Medicare Advantage plan determines its own network, which can vary widely from one plan to another, making it important for beneficiaries to review which providers are included before enrolling.

The other options describe different aspects of Medicare plans but do not accurately define "network." One option refers to the formulary of prescription drugs, another focuses on geographical service areas, and the last pertains to eligibility criteria for enrollment—all of which are important components of Medicare Advantage plans but do not capture the essence of what a network is.