If you’re thinking of enrolling in Medicare, it’s important to compare your coverage options beforehand. You can enroll in Medicare Part A and Part B, or you can choose a Medicare Advantage plan.
Original Medicare vs. Medicare Advantage
The first step in comparing Medicare plans involves understanding the differences between the two main types of coverage.
- Original Medicare is made up of Medicare Part A (hospital insurance) and Medicare Part B (medical insurance). Many people enrolled in Original Medicare choose to add private Medicare Part D (prescription drug coverage) and/or a private Medicare Supplement Insurance plan (Medigap), which may help pay for certain out-of-pocket costs, like coinsurance, deductibles and copayments.
- Medicare Advantage plans (Part C) are an alternative to Original Medicare offered by private insurance companies. They are Medicare-approved plans required by law to offer the same benefits as Original Medicare. Medicare Advantage plans may include benefits that Original Medicare doesn’t offer, such as hearing, eye and vision care, prescription drug coverage, and health and wellness benefits.
In order to enroll in a Medicare Advantage plan, you must
- Enroll in Original Medicare (both Part A and Part B)
- Live in the plan’s service area
- Usually not have End Stage Renal Disease (ESRD)
Unlike Original Medicare, Medicare Advantage plans limit your out-of-pocket costs. Once you’ve reached that limit, your plan will cover 100% of your medical expenses for the rest of the year. Specific out-of-pocket limits, deductibles, copayments and coinsurance vary depending on the plan.
Before enrolling, you’ll want to make sure that the plan comes with benefits that suit your unique medical needs. Not every plan, for example, comes with a prescription drug benefit.
The next step
A licensed insurance agent can help you find Medicare Advantage plans in your area and get you enrolled in a plan that makes sense for your health care needs and budget.
Speak with a licensed insurance agent today at TTY Users: 711.
