Understand Your Medicare Options

Before choosing a Medicare plan, it’s important to understand what each option covers and who provides it. Once you understand the basics, you can better compare how different plans may work together to help ensure you have the healthcare coverage you need.

Let’s review the four main components of Medicare:

• Original Medicare (Parts A & B)
   
• Medicare Prescription Drug Coverage (Part D)
   
• Medicare Advantage (Part C)
   
• Medicare Supplement Insurance (Medigap)
   

Original Medicare is provided by the federal government and is the foundation of Medicare coverage.

• Part A helps cover hospital stays, inpatient care, and skilled nursing services.
   
• Part B helps cover doctor visits, outpatient services, preventive care, and medical supplies.
   

When you enroll in Medicare, you start with Parts A and B as your base coverage.

Medicare Part D provides coverage for prescription medications and is offered by private insurance companies in two ways:

1. As a standalone Part D plan, which pairs with Original Medicare
    
2. As part of a Medicare Advantage plan that includes drug coverage
    

Each Part D plan has its own list of covered medications (formulary), so coverage and costs can vary by plan.

Medicare Advantage, also known as Part C, is an alternative way to receive your Medicare coverage through a private insurance company.

With a Medicare Advantage plan:

• You still enroll in Part A and Part B through the federal government
   
• You then choose a Part C plan from a private insurer
   
• Your Part A and Part B benefits are provided through the Advantage plan
   

Most Medicare Advantage plans also include:

• Prescription drug coverage (Part D)
   
• Dental, vision, and hearing benefits
   
• Fitness and wellness programs
   

There are several types of Medicare Advantage plans, and benefits vary by carrier and plan.

Medicare Supplement Insurance, or Medigap, helps cover many of the out-of-pocket costs that Original Medicare does not, such as deductibles, copays, and coinsurance.

• There are 10 standardized Medigap plans, labeled by letters (for example, Plan A)
   
• Each plan offers the same core benefits nationwide, regardless of the insurance company
   
• Premiums may vary by carrier
   
• Medigap plans are purchased directly from private insurance companies
   
• Medigap works alongside Original Medicare, not with Medicare Advantage
   

Note: Massachusetts, Minnesota, and Wisconsin have different Medigap plan structures than the rest of the country.

Self-employed individuals can save on taxes when choosing our insurance plans.