Original Medicare (Medicare Part A and Part B) is the federal health insurance program for people age 65 and older and people younger than 65 who have a qualifying disability or certain medical conditions.
Medicare Advantage plans (Medicare Part C) are sold by private insurers as an alternative to Original Medicare and provide at least the same benefits as Medicare Part A and Part B combined into one plan.
The chart below provides a side-by-side comparison of the features and benefits of Original Medicare vs. Medicare Advantage.
Feature/Benefit | Original Medicare | Medicare Advantage |
---|---|---|
Helps cover hospital and medical costs |
✔ |
✔ |
May cover routine dental care |
✘ |
✔ |
May cover routine vision care |
✘ |
✔ |
Usually covers prescription drugs |
✘ |
✔ |
Has an out of pocket maximum |
✘ |
✔ |
Every Medicare Advantage plan must provide the same hospital and medical benefits as Medicare Part A and Part B, which includes:
Many Medicare Advantage plans may offer some benefits that Original Medicare doesn’t cover, such as:
Medicare Advantage plans also have an annual out-of-pocket maximum, which limits how much you have to pay out of pocket for health care expenses in a single year. Original Medicare does not have an out-of-pocket maximum.
Whether you choose Original Medicare or Medicare Advantage, there are some out-of-pocket costs you must pay, including premiums, deductibles and coinsurance or copayments.
Most people do not pay a premium for Medicare Part A, as long as they paid sufficient Medicare taxes while working. If you do have to pay a Part A premium, you could pay up to $471 a month in 2021.
The 2021 standard Medicare Part B premium is $148.50 per month.
Some Medicare Advantage plans feature $0 monthly premiums, and there may be $0 premium plans available where you live.
If you enroll in a Medicare Advantage plan that has a premium, you’ll pay your Medicare Advantage premium in addition to your Part B premium. If your Medicare Advantage plan does not have a premium, you’ll only pay your Part B premium.
In 2021, the Medicare Part A deductible is $1,484 per benefit period, and the Part B deductible is $203 per year.
Medicare Advantage plan deductibles vary depending on the specific plan you enroll in.
If you’re enrolled in Original Medicare you typically pay a 20 percent Part B coinsurance for covered services after you meet your Part B deductible, and Medicare pays the remaining 80 percent.
For inpatient hospital stays in 2021, you first have to meet your Part A deductible for the benefit period. After that, you pay $0 coinsurance for days 1-60, $371 per day for das 61-90 and $742 per day for each lifetime reserve day after day 90. After your lifetime reserve days are used, you are responsible for paying all costs.
Medicare Advantage plan coinsurance amounts vary depending on the specific plan you enroll in.
Before you can enroll in a Medicare Advantage plan, you must enroll in Original Medicare.
Some people are automatically enrolled in Original Medicare three months before their 65th birthday, and some people must manually sign up for Medicare.
You will typically be automatically enrolled in Original Medicare if one or more of the following applies to you:
If you aren’t automatically enrolled in Original Medicare, you can manually enroll by:
Once you’re enrolled in Original Medicare, you can sign up for a Medicare Advantage plan.
Compare Medicare Advantage plans that may be available in your area and speak with a licensed insurance agent who can help you sign up for a Medicare Advantage plan that’s right for you.
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