Jul 07
When you qualify for Medicare, you get to choose how you receive your health and prescription drug coverage. Following are a brief description of your coverage choices.
Original Medicare
- Run by the Federal government
- Provides you Part A and Part B coverage
- You can join a Medicare Prescription Drug Plan to add coverage
- You can buy a Medigap (Medicare Supplement Plan sold by private insurance companies) to help fill the gaps in Part A and Part B coverage (like coinsurance, copayments, and deductibles.
Medicare Advantage Plans (like an HMO or PPO)
- Run by private insurance companies approved by Medicare.
- Provide your Part A and Part B coverage, but can charge different amounts for certain services. May offer extra coverage and prescription drug coverage for an extra cost. Costs for items and services vary by plan.
- If you want drug coverage, you must get it through your plan (in most cases).
- You don’t need a Medigap policy.
Other Medicare Health Plans
- Plans that aren’t Medicare Advantage Plans but are still part of Medicare.
- Include Medicare Cost Plans, Demonstration/Pilot Programs, and Programs of All Inclusive Care for the Elderly (PACE).
- Some plans provide Part A and Part B coverage, and some also provide prescription drug coverage (Part D).
If you have other health and/or prescription drug coverage from a former or current employer or union, you may have other coverage choices. This coverage may affect which Medicare coverage choice is best for you.
Source: 2009 Choosing a Medigap Policy. A Guide to Health Insurance for People with Medicare
