Medicare is a federal health insurance program for people 65 and over, and for people under 65 with certain disabilities. People with Original Medicare are eligible for a Medigap insurance plan to pay for some of what’s not paid by Medicare. They can also add a stand alone Part D Prescription plan, Dental Vision & Hearing coverage and Cancer coverage.
Medicare supplement insurance is available to cover Medicare approved Part A & B out of pocket expense. Plans F, G & N are the most popular plans, but there are other choices as well. This article discusses general information about Medicare supplement plans and Medicare Advantage Plans. You can get a quote and detailed information upon request.
Part A Medicare
- Coverage for treatment received on an inpatient basis, Hospice and some Home Health Care services
- Is provided by the federal government to anyone who qualifies
- Is free if you or your spouse paid Medicare taxes while working
Medicare Part A is inpatient hospital insurance. It helps pay for medically necessary inpatient hospital stays. Part A also helps pay for some home health care and hospice care.
Inpatient hospital care is subject to a $1,340 deductible for each 60 day benefit period. If you are still in the hospital after 60 days, you will be required to pay a daily copayment between $335 and $670 until the 150th day when your hospital coverage ends.
A Medigap policy will pick up and pay an additional 365 days after Medicare runs out.
Part B Medicare
- Insurance for medical care and preventative services received on an outpatient basis, emergency room care, and care while on observation status in a hospital
- Provided by the federal government to anyone who qualifies and pays the monthly premium
Medicare Part B is called Medical on your card, but what it really means is outpatient insurance. It helps pay for medically necessary services performed on an outpatient basis that are needed to diagnose and treat a medical condition. It also covers preventive services.
Medicare Part B covers 80% of covered costs after you meet the deductible ($183 for 2018), and you would pay the other 20%, but a Medigap policy will cover the 20% for you.
Part D Medicare
- Covers Prescription Drugs
- Requires Part A and/or Part B
- Offered by private insurers who are contracted with Medicare to provide this coverage
- May have late enrollment penalties if you don’t sign up when you’re first eligible and have no creditable coverage
Medicare Part D is prescription drug coverage. Part D coverage is available as a Stand Alone Option (PDP) or as part of a Medicare Advantage plan (Part C). Part D plans are offered by private insurance companies contracted and approved by Medicare.
Medicare Supplement “Medigap”
- Also called Medigap Plans
- Offered by private insurers
- Helps pay for costs not covered by Original Medicare, such as deductibles, copatyments and coinsurance
- Available in 11 different plans such as F, G & N for an additional premium
Medicare Advantage Part C
- Requires Part A and Part B
- Requires payment of the Medicare Part B premium and in most cases an additional premium
- Offered by private insurers as an alternative to Original Medicare
- Combines many benefits of Part A, B and sometimes D
- Provides alternate benefit form in lieu of Original Medicare
- Generally lower premiums than a Medigap policy
- Requires payments of copays and some coinsurance up to the annual out of pocket limit
Medicare Part C is also called Medicare Advantage (MA). It’s an alternative benefit form to Original Medicare. Medicare Advantage may include prescription drug coverage, along with extra benefits, and is offered through private insurance companies.