Get to know the basics
Download our Starter Guide for a clear, simple introduction to Medicare.
If you’re getting close to your Medicare enrollment window, you’ve probably discovered what most Medicare beneficiaries already know: Medicare can be confusing. To help you avoid information overload and better understand Medicare and all the benefits available to you, we’ve created resources to help. Check out our Medicare Starter Guide and all the information on the Medicare Learning Center.
Medicare Coverage
Many assume when they enroll in Original Medicare, or Parts A and B, their healthcare expenses are covered. However, in most cases, Original Medicare pays 80 percent of all medical and hospital bills and offers no prescription drug coverage. This leaves 20 percent of medical bills and 100 percent of the cost of most prescription drugs up to you. These expenses can add up quickly, and without extra protection, an unexpected illness or injury can put your savings at risk. That’s why many choose to add coverage to Original Medicare. It’s also the reason Medicare offers you a variety of coverage options. Let’s start with a brief overview of the plans that help cover what Original Medicare doesn’t cover.
Medicare Advantage (Part C)
One popular option is a Medicare Advantage (MA) plan. MA plans are a popular choice for consumers because of their convenience, coverage options and extra benefits. Most MA plans feel like the insurance plan you’re used to because they offer comprehensive benefits through one company. In general, MA plans cover the 20 percent Medicare doesn’t cover while offering Part D prescription drug coverage and valuable extras like dental, vision and hearing benefits. They also come with a maximum out-of-pocket limit that guarantees you’ll never have to spend over a certain amount on your medical care in a given plan year. MA plans generally have more than one coverage option to choose from, and many have a $0 premium.
Original Medicare + Part D
Most Medicare beneficiaries seek out prescription drug coverage because prescriptions are often incredibly costly.
One way to do that is by signing up for a Medicare Part D prescription drug coverage plan. These plans also come with monthly premiums that vary depending on the type of coverage you choose. With Part D you’ll have prescription coverage, but it still leaves you vulnerable to the 20 percent of medical and hospital costs Original Medicare doesn’t cover.
Original Medicare + Part D + Medicare Supplement
Medicare Supplement Insurance (Med Supp) also covers the 20 percent that Original Medicare doesn’t cover. Med Supps are paid for through monthly premiums that can vary depending on age, location, health status and many other factors.
One of the biggest differences between Med Supp and an MA plan is that supplements don’t offer Part D prescription drug coverage or dental, vision and hearing benefits. If you’d like to combine Med Supp with drug coverage, you’d have to sign up for a separate Part D plan. This can be costly with all the varied premiums, and you’ll also have to work with three entirely separate plans.
Now that we’ve reviewed your options, start researching plans in your area. To help with this next step, review: Research to Find Your Ideal Medicare Plan.
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