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Medicare Supplement Guide

Medicare is a health-insurance program created to help United States citizens aged 65 years or older. Medicare is managed through the federal Centers for Medicare and Medicaid Services (CMS). Everyone qualifies for Medicare Parts A and B once they turn 65, although not everyone can get Part A premium-free. Parts A and B are often called traditional Medicare or original Medicare and mostly cover hospital expenses and preventive services. Traditional Medicare doesn't cover many other kinds of health-care services, however, and often seniors opt to buy supplemental health-care plans to work with it.

  1. Medicare Advantage

    • Medicare Advantage (MA), also referred to as Medicare Part C, combines Medicare plans Part A and Part B with extra benefits. Part C is not obtained through the federal government but is instead provided through private health-insurance companies. These insurance companies set their own premiums and policy rules, and benefits vary according to state and plan. Members must be enrolled in both Medicare Part A and Part B in order to get Medicare Advantage. Medicare Advantage plans may bundle original Medicare services with prescription drug coverage, vision or dental insurance. Medicare Advantage plans can also be found in different forms, such as HMOs (health management organization), PPOs (preferred provider organization) plans, customized special needs insurance and private fee-for-service (PFFS) plans.Your state may also feature MA plans which can be used with medical savings accounts.

    Medicare Part D

    • Part D Medicare offers prescription medication coverage. You do not need to enroll in Part D if you already have Medicare Advantage. Part D is also bought through insurance companies instead of the federal government, who make the rules concerning allowable drugs, premiums, deductibles and extra charges. Part D may be added to not only original Medicare but also private fee-for-service plans and Medicare savings accounts. You do not have to buy Part D insurance, but if you do not enroll when you first have the chance and then decide you want it later, you may have to pay late enrollment fees.

    Military Medicare Supplements

    • Members of the military have access to their own supplemental-insurance plans for Medicare. Veterans may be eligible to receive Part D-style prescription drug coverage through the United States Department of Veterans Affairs. Veterans can, of course, enroll in Medicare Part D or Medicare Advantage plans if they choose, but they can't use a VA policy with any other Medicare prescription plan. Active-duty military, retired military and their families can also enroll in TRICARE benefits. If you are eligible for Part A Medicare, you must also have Part B before enrolling for TRICARE prescription benefits. TRICARE and Medicare Advantage cannot both be used for the same benefit.

    Standardized Medicare Supplement Plans

    • Standardized Medicare supplemental policies, often called Medigap, work with Parts A and B to help fill in the holes of traditional Medicare coverage. As of 2010, most states offer 10 Medicare supplemental plans. These plans are designated by letter, A through N, although some insurance companies in different states give them their own names. Plan A offers basic services, such as 100 percent coinsurance for Part B services, the costs of the first three pints of blood per year and an additional year of in-patient hospital coverage after traditional Medicare benefits end. Other Medicare supplement plans include more services, such as foreign travel emergency benefits, skilled nursing facility co-insurance and coverage for the deductibles for Medicare Parts A and B. Plan F can be purchased as a high-deductible plan, with more annual out-of-pocket costs but lower monthly premiums than some of the other supplements. Plans K and L cover 50 or 75 percent of some services and come with their own annual out-of-pocket limits as well.

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