Medicare Advantage Programs - What You Should Know...
Overview
Medicare covers many of your healthcare needs. Today Medicare is working with private companies approved by the government which provide different ways to get your health care and prescription drug coverage in the Medicare Program. The Medicare Plan that you choose affects many things like cost, benefits, doctor, hospital choice, convenience, prescription drugs, pharmacy choice, and quality of care. Your Medicare plan choices include:
- Original Medicare Coverage A & B
- Medicare Supplement/Medigap Policies
- Medicare Advantage Plans
- Prescription Drug Coverage
Original Medicare
The original Medicare plan is one of your health plan choices as part of the Medicare Program. You will be in the original Medicare plan unless you join another Medicare Plan. It is important to enroll in Medicare when you become eligible to avoid potential costly penalties.
The original Medicare plan is a fee-for-service plan that is managed by the Federal Government. Like most insurance plans you must pay annual deductibles and co-payments for inpatient and outpatient services. Each year there are changes in the amount you pay.
Medicare Supplement/Medigap
Medicare was never designed to cover every facet of a retiree's health care and there are many services that Medicare doesn't cover, expenses that you have to pay for yourself. Medicare Supplement insurance is a way to offset these out of pocket expenses. The plans are standardized (A-J) which you may choose from based on your individual needs. The cost of the plans vary with the different insurance companies.
Medicare Advantage Plans
When you join a Medicare Advantage Plan you receive all of your covered Medicare services through that plan. This coverage may include prescription drug coverage. In most of these plans there are extra benefits and lower co-payments than in the Original Medicare plan. To join a Medicare Advantage Plan you must have Medicare part A & B. Different types of Medicare Advantage Plans include: Medicare Health Maintenance Programs (HMO), Preferred Provider Organizations (PPO), Private Fee for Service (PFFS), Medicare Special Needs Plans (designed for those with chronic illnesses).
Prescription Drug Coverage
Medicare prescription drug coverage is insurance that covers both generic and brand name prescription drugs at participating pharmacies in your area. Medicare prescription drug coverage provides protection for people who have very high drug costs or from unexpected drug bills in the future. Like other insurance, if you join, you will pay a monthly premium, which varies by plan, and a yearly deductible. You will also pay a part of the cost of your prescriptions including a co-payment or coinsurance. If you do not join when you are eligible there may be an ongoing penalty that you may have to pay. For more information visit www.Medicare.gov