It may seem confusing, but generally speaking you have three options. You can stick with Traditional Medicare, which includes Part A, Part B and then the purchase of a Part D drug plan, which is required to avoid a penalty. You also have an option to purchase a Medicare Supplement Supplement, or a Medicare Advantage plan, depending on your needs. No one plan is right for everyone, and that’s why it’s important you talk to a broker to discuss your needs. Remember, a broker has your needs in mind, not their own, and not those of any single insurance company like an agent does. Medicare brokers never charge a fee, and you don’t pay a premium for their services. Our brokers have a combined 100 years of experience in Medicare. Contact us today and we’ll make sure you’re all set when you’re Medicare starts tomorrow.
Traditional Medicare, sometimes called Original Medicare, works on a fee-for-service basis. This means that you can go to any doctor or hospital that accepts Medicare, anywhere in the United States, and Medicare will pay its share of the bill for any Medicare-covered service it covers. You will almost always have a deductible, and you will typically pay 20% of all services and hospitalizations.
A Medicare Supplement, sometimes called Medigap, is Insurance that helps fill “gaps” in Original Medicare and is sold by private companies. Original Medicare pays for much, but not all, of the cost for covered health care services and supplies. A Medicare Supplement Insurance policy can help pay some of the remaining health care costs. A Medicare Supplement always requires you to maintain Medicare Part A, Part B, and Part D, in addition to the premium for the supplement plan itself.
Medicare Advantage Plans, sometimes called Part C or MA/MAPD plans are an “all in one” alternative. They are offered by private companies approved by Medicare. If you join a Medicare Advantage Plan, you still have Medicare and these plans must offer at least all of the benefits of original Medicare Part A, Part B and typically Part D, but all in one plan. In many cases, these plans are less expensive that Medicare supplements, and in some cases have a $0 premium. In many cases, these plans offer additional benefits like dental, vision, hearing, and other benefits like transportation and credits for over-the-counter medications and supplies.