|  | Healthcare Industry | Health Insurance

What Are the Different Medicare Packages?

The Social Security Administration runs several benefit programs, including Medicare, for American citizens. Medicare provides health insurance to those who have reached age 65 or who have a disability and are currently receiving disability benefits. Medicare has four main coverage types, and members have the option of building different packages, according to their medical needs.

  1. Original Medicare

    • Original Medicare is the basic coverage and is composed of Medicare Part A and Medicare Part B. Medicare Part A is hospital insurance, and it helps you pay for costs related to care at inpatient hospitals, hospices and skilled nursing facilities. Medicare Part B is medical insurance, and it helps you pay for costs of doctor visits and preventive care. If you or your spouse pay Medicare tax, Medicare Part A is free. Generally, Medicare Part A and Part B come together, but since you must pay for Part B, you can choose to drop it. If you choose to keep your Part B coverage, you have the first Medicare package of benefits: original Medicare.

    Medicare Advantage Plans

    • Another option you have is to add an Advantage Plan to your original Medicare plan. Medicare Advantage Plans (Part C) are plans that are provided by private insurance companies approved by Medicare. These companies have contracts with Medicare, and they are allowed to provide you service for lower costs than if you were to receive insurance without Medicare. You can add a Part C plan if you enroll in Medicare Part A and Part B. These plans must provide Part A and Part B coverage, plus additional coverage not included in original Medicare, such as vision, hearing and dental coverage. Many Part C plans also include prescription drug coverage.

    Medigap

    • Instead of adding an Advantage Plan (Part C) to your original Medicare, you can choose to add a Medigap policy. Medigap is also insurance provided by private companies, and it covers any gaps that you may find in Part A or Part B coverage that are necessary for your health care. Prices vary according to plans and the date you enroll. If you enroll after six months from the day you enrolled in Part B, companies can charge you higher prices. You cannot add a Medigap policy and a Part C plan. Medigap does not include prescription drug coverage.

    Medicare Part D

    • Medicare Part D offers prescription drug coverage plans. You can add a Part D plan if you have Medicare Part A or Part B. You have two options regarding Part D. You can choose to add a Part D plan to your Part C plan (if this does not include prescription drug coverage) or you can add it to your Medigap policy. You can choose from different plans that are available, and the total monthly premium you pay varies according to the plan you pick, the coverage included and the availability of the plan in your state.

Health Insurance - Related Articles