Medicare Part C Explained

Medicare Part C or Medicare Advantage plans are a type of medical coverage that you can get when you reach age 65 or become disabled. This coverage aims to provide the most comprehensive package of benefits available with any Medicare plan. With this plan, doctor visits, hospital stays and prescription drugs are all covered.

Combination of Benefits

• When you turn 65, you can enroll in Medicare Part A. This provides you with hospital coverage and some other basic benefits. You can also choose to add Medicare Part B, which provides doctor coverage and some other benefits. As an alternative to these separate plans, you can simply take Medicare Part C, which combines both programs and provides more coverage.

Provider

• With Medicare Parts A and B, you get your coverage directly from the federal government. Part A is provided at no cost and Part B only has a small monthly premium. If you opt out of these coverages and choose a Medicare Part C plan, your coverage is provided by a private company. The government restricts Part C plan options and what private companies can charge for them.

Prescriptions

• With Medicare Parts A and B, prescription drug coverage is not included. Many senior citizens who take these options must purchase an additional prescription plan, which is referred to as Medicare Part D. Instead of purchasing a separate plan, with a Medicare Part C plan, you can simply add prescription coverage.

Out-of-Pocket

• Purchasing the Medicare Part C plan may incur some out-of-pocket medical costs. Most of these plans pay 80 percent of covered costs. This means you are responsible for the other 20 percent. You also must pay monthly premiums for the plan. Some plans also have an annual deductible, which you must pay before coverage starts.

Types

• There are several different types of Medicare Advantage plans. Some plans are formed as health maintenance organizations (HMOs), while others use a preferred provider organization (PPO), or private fee for service method. Both the HMO and PPO prefer that you use medical providers in their network.