Seniors have several insurance options when it comes to Medicare.
Medicare is a type of medical, or health, insurance. It's federally funded and administered, and it's designed for those age 65 and over and the permanently disabled. You qualify for Medicare if you or your spouse has worked and paid Medicare taxes for at least 10 years, or you can buy into Medicare if you didn't otherwise qualify. Medicare is also compatible with other medical insurance, which can help keep your out-of-pocket health care costs under control.
Medicare Overview
Medicare has two main parts: A and B. Part A covers hospitalization, hospice and skilled nursing care. Part B covers lab tests, medical equipment and doctor visits and services. Part A generally has no monthly premium and has significant out-of-pocket costs: a hospital visit has a deductible of over $1,000 or more. Part B has a monthly premium and has a calendar year deductible and a 20% co-pay, which can also quickly add up.
Medicare Supplements
Medicare Supplements are medical insurance plans that are secondary to Medicare. The plans are regulated by the federal government, so a Plan A, for example, has the same benefits no matter which company you purchase it from. Plans cover different out-of-pocket Medicare costs, like the hospital deductible or Part B co-pays, and might offer additional coverage, like foreign emergency coverage (Medicare doesn't provide coverage overseas). You have a guaranteed coverage period around the time you qualify for Medicare Parts A and B, and after that, you can enroll as long as you meet the underwriting requirements.
Medicare Advantage Plans
Medicare Advantage plans (also known as Medicare Part C) are another Medicare-related medical insurance option. Medicare Advantage plans take the place of Medicare, although you are still considered a Medicare beneficiary. These plans aren't standardized, so co-pays and deductibles vary. You may have additional benefits, like dental or vision coverage, and prescription coverage might be offered as well. Medicare Advantage plans are also regionally based, but if you move, you have the right to enroll into another plan.
Medicare Part D
Medicare Part D is Medicare's prescription coverage. Part D isn't actually offered through Medicare, though. Instead, private companies offer Medicare-approved plans. These standalone plans work with original Medicare (Parts A and B) or original Medicare with a Medicare Supplement plan. These plans also vary in premium, co-pays and deductibles. Each plan also has its own drug list, or formulary, and pharmacy network. If you have a Medicare Advantage plan, your Part D coverage might be built into it.
Tags: Medicare Advantage, Advantage plans, medical insurance, Medicare Advantage plans, Medicare Part, plans also
