What Is Medicare Part C & D?

Medicare is health insurance provided to citizens of the Untied States by the federal government. In order to be eligible for Medicare, citizens must be 65 or older, disabled or diagnosed with an end-stage renal disease. There are four different Medicare plans. These plans are referred to as "parts" and are called Part A, Part B, Part C and Part D. Medicare plans have complex arrangements and often have tandem enrollment requirements.

Medicare Part C

• Medicare Part C is known as Medicare Advantage. There are four types of Medicare Advantage plans, each of which is offered through a private third-party insurance company. Medicare approves all third-party companies offering Part C plans. Types of Advantage plans are: Health Maintenance Organization, Preferred Provider Organization, Private Fee-for-Service and Special Needs Plans. Advantage plans offer flexibility and elective coverage not provided by Medicare parts A and B, though they require a steeper monthly premium. In order to be enrolled in Medicare Part C, citizens must first enroll in parts A and B. Advantage plans offer options for visual, dental and health/wellness coverage that other plans do not.

Medicare Parts A and B

• Medicare requires those who would enroll in Part C to first enroll in parts A and B. Part A is basic, free hospital insurance that covers inpatient care in hospitals and nursing facilities, hospice care and home health care. Part B covers doctors' services, outpatient care, home health services and other care deemed to be medically necessary. Citizens enrolled in Part B pay a standard monthly premium. Medicare parts A, B and C are designed to work in tandem such that parts A and B cover all basic and medically necessary services while Part C covers elective care and procedures.

Medicare Part D

• Medicare Part D is prescription drug coverage. It is available to all recipients of Medicare plans and is offered at the time of enrollment. Those who decline Part D initially must pay a late enrollment fee in order to sign up for drug coverage at a later date. Part D cannot be obtained independent of other Medicare plans; in order to enroll in prescription drug coverage citizens must also be enrolled in Medicare Part A or B.

Medicare Parts C and D

• Prescription drug coverage, or Medicare Part D, is included in most Medicare Advantage, or Part C, plans. There are two types of Part D plans. These types are Medicare Prescription Drug Plans and Medicare Advantage Plans. The former is designed as an addition to Part A, Part B and Private Fee-For-Service and Medical Savings Account plans. The latter is designed for addition to HMO and PPO Part C plans. Those enrolled in Medicare Advantage plans who opt for Part D coverage receive all Medicare options: Part A and Part B as prerequisites for Part C, Part C and prescription drug coverage under Part D.