With over forty million members, Medicare is the large US health insurance plan for retired and disabled people.
A plan like this that provides health insurance to millions of people is bound to grow and evolve. Beneficiaries have more choices than they ever did before about the way they get their health covered. It is a good thing to have choices. But it is very important to make the right choice so you get the best plan for you.
Do you understand how Medicare works? The first parts are Medicare A and B. These are also called original Medicare. They cover basic hospital and medical care. Even with these plans, beneficiaries still need to be responsible for deductibles and copays. So even if a person is covered by original Medicare, they will still have out of pocket costs.
For an extra premium, a beneficiary could purchase a medicare supplement plan. Health insurance companies sell these to cover deductibles and copays.
Another choice, apart from the original plan, could be Medicare Advantage (MA). MA plans work by themselves, and not to supplement the original plan. They are partially funded with the tax money that would have funded the original plan. Sometimes a member must pay a premium, but sometimes they do not require an additional premium.
Do not confuse MA with supplements. Supplements add benefits to Part A and B. MA plans replace them. They are required to provide benefits as good as, or better than, the original Part A and B.
Prescription coverage comes from the newest type of plan. These are called Part D plans. They help cover the cost of prescription medication. They do come from health insurance companies, and they may require a premium, but are still funded with some tax dollars.
How can you decide which plan is right for you? Every beneficiary has unique needs. You must look at the choices, and then balance them against your own budget, lifestyle, and health needs.
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