Medicare’s different parts include Part A, Part B, Medicare Advantage, Part D, and Medicare Supplements.
Medicare Part A is hospital insurance, which covers inpatient care in a hospital, mental health facility, or skilled nursing facility setting. Medicare Part B is medical insurance, and covers preventive health care, doctor visits, and outpatient medically necessary care. Together, these two parts make up Original Medicare. You can purchase Part A alone or both Part A and Part B. To select additional offerings, you must be enrolled in both Medicare Part A and Part B.
Part C, which is called Medicare Advantage, is provided by private health insurance companies. Medicare compensates these insurance companies to handle your health care. Under Medicare Advantage plans, you receive the same Part A and Part B coverage as under Original Medicare. You will find that many insurance companies that offer Medicare Advantage plans have added perks to secure your business. These can include additional packages for dental and vision coverage, fitness club memberships, 24-hour nurse advice hotlines, and more.
Medicare Advantage Prescription Drug plans offer Part A, Part B, and Part D coverage. The prescription drug coverage you receive under one of these plans is equivalent to what you would find under a Part D plan. This full coverage package offers a convenient solution for all of your health care needs.
With a Medicare Advantage plan, you often have a network of providers to choose from. Depending on whether you have an HMO, PPO, PFFS or another type, you may be able to see providers outside of your plan’s network, but it will likely come with a higher cost.
Medicare Part D Prescription Drug Plans provide coverage for your prescription drugs. Each plan is standardized to provide coverage for at least two drugs in the most common classes of drugs. These plans, offered by private health insurance companies, are commonly added to supplement Original Medicare.
Medicare Supplement plans, also known as Medigap, cover the expenses left over once Medicare pays its share for your Part A and Part B health care. With your choice of ten available supplement plans, you can find coverage for things like Part A coinsurance and hospital costs, Part B coinsurance and copayments, hospice care, the Part A deductible, and more. Often, people who choose to remain with Original Medicare will add a Medicare Supplement plan to help pay for the out-of-pocket costs.
Your choice in Medicare Plans comes down to a few different things. With these plan options, you face a difference in the providers you see, the potential for out-of-pocket costs, the prescription drug coverage, and more. Most Medicare beneficiaries choose to sign up for a Medicare Advantage plan with or without drug coverage or stay with Original Medicare and add a Medicare Supplement plan and a Part D plan. The best combination for you may be different than the best combo for your spouse. Consult with The Coleman Agency for help in deciding which benefits fit your needs.