The Medicare system can be overwhelming, and intimidating. Most seniors struggle to understand all the different parts, and plans involved with Medicare. And with the billions of dollars spent every year on advertising the plans, it certainly doesn’t get any easier.
So, let’s break down the two main options for your Medicare coverage: Medicare Supplements, and Medicare Advantage.
Medicare Supplements
A Medicare Supplement plan, also known as a Medigap plan (just to make it more confusing), is an insurance policy that that supplements your Original Medicare (Parts A & B). The supplement helps pay the portion of Medicare costs that Original Medicare does not cover, such as the 20% coinsurance in Part B, and the large deductible in Part A.
Since Prescription Drugs is not covered in Part A or Part B of Medicare, the supplement does not cover prescriptions either. The supplement only covers, what Original Medicare covers.
Important points of consideration when choosing a Medicare Supplement:
Medicare Advantage
Medicare Advantage, also known as Part C, is the privatized version of Medicare. It acts as an “all-in-one” alternative to Original Medicare. The plans incorporate Part A, Part B, and usually Part D of Medicare, and sometimes, additional benefits above and beyond that of which Original Medicare offers.
Important points of consideration when choosing a Medicare Advantage Plan:
The numerous options to consider for your Medicare coverage, having an understanding of the two main options will help you be able to properly protect your health, and financial life. Do not allow yourself to be swayed by a smooth-talking insurance salesman, or a charming celebrity endorser, or buy a plan because of the “freebies”. Likewise, do not allow yourself to become over-insured either.
Trust your instincts, and do what is right for you and your family.