Which of the following statements about Medicare Advantage is correct?

Medicare Advantage, also known as Medicare Part C, is a type of health plan that is offered by private insurance companies that have been approved by Medicare. This program allows beneficiaries to receive their Medicare benefits through these private plans, which can include a variety of coverage options, including hospital care, medical services, and often additional benefits that Original Medicare does not cover.

Private insurers design their Medicare Advantage plans to provide a comprehensive package of healthcare services, and they receive payments from the federal government to cover these services for the enrollees. Because it is administered through private companies, Medicare Advantage often includes features like coordinated care and additional services such as coverage for vision, hearing, and dental, which are not typically covered under Medicare Part A or Part B.

The other options provided do not accurately describe Medicare Advantage. It's not exclusively federally funded nor is it a fee-for-service plan, as it generally operates on managed care principles with different costs and coverage structures than traditional Medicare. Additionally, preventive services are typically covered by Medicare Advantage plans, aligning with Medicare's focus on preventive care, thus enhancing overall health outcomes for beneficiaries.