Medicare - What You Need To Know
Medicare Overview
Medicare is a federal health insurance program primarily for individuals aged 65 and older, although certain younger individuals with disabilities may also qualify. It comprises several parts: Part A (Hospital Insurance) covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care; Part B (Medical Insurance) covers certain doctors' services, outpatient care, medical supplies, and preventive services. For those looking for comprehensive coverage, Part C (Medicare Advantage) is an all-in-one alternative that includes Parts A and B and often Part D (Prescription Drug Coverage). Lastly, Part D helps cover the cost of prescription drugs and may help protect against higher costs in the future (NerdWallet: Finance smarter) (Integrity Senior Inc).
Medicare Supplement Plans (Medigap)
Medicare Supplement plans, also known as Medigap, are designed to cover some of the out-of-pocket costs not paid by Original Medicare, such as copayments, coinsurance, and deductibles. One of the most significant advantages of starting with a Medicare Supplement plan is the flexibility it offers—you can choose any doctor or specialist who accepts Medicare, without worrying about network restrictions. Additionally, Medigap plans provide the ability to switch to a Medicare Advantage plan on a trial basis, offering peace of mind and the flexibility to revert if it doesn't meet your needs. Medigap plans are standardized across insurance companies, ensuring consistent benefits no matter which provider you choose (NerdWallet: Finance smarter) (AARP Medicare Plans).
Medicare Advantage Plans
Medicare Advantage (MA) plans, also known as Part C, are an alternative to Original Medicare provided by private insurance companies approved by Medicare. These plans bundle Part A, Part B, and often Part D benefits, and may include extra benefits like dental, vision, and hearing care. Medicare Advantage plans usually operate through HMOs or PPOs, which means you'll typically need to use the plan's network of providers. While these plans can offer lower out-of-pocket costs and additional benefits, they may also come with more restrictions, such as requiring referrals for specialists and limited provider networks. For those who prefer integrated, managed care and additional services, Medicare Advantage can be a compelling option (NerdWallet: Finance smarter) (Integrity Senior Inc).
