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Medicare Supplement Programs

Medicare is a federal health insurance program administered through the Centers for Medicare and Medicaid Services. Medicare is offered primarily to people aged 65 years or older. If you meet certain conditions, Medicare Part A, also called traditional Medicare or original Medicare, is free. Medicare Part B offers additional services but users must pay a monthly premium. Medicare Parts A and B are obtained through the government and only cover certain services, so many seniors also purchase supplemental health care benefits.

  1. Medicare Advantage

    • Medicare Advantage, also called Medicare Part C, combines Medicare plans Part A and Part B with additional services. Medicare Advantage plans are offered through private health insurance companies such as Humana and Aetna, and premiums, regulations, services and policies differ according to the company and the state where you live. In general, you must be enrolled in both Medicare Part A and Part B to get Medicare Advantage. Medicare Advantage may have services such as prescription drug coverage, vision and dental. Medicare Advantage is often offered in different forms, such as health management organization plans, preferred provider organization plans, health savings account plans, special needs and private fee-for-service plans.

    Medicare Part D

    • Medicare Part D is a prescription drug plan. If you have Medicare Advantage, you do not need to also enroll in Part D. The companies that offer Medicare Part D set their own rules regarding premiums, costs and the kinds of drugs covered. Part D plans can be added to original Medicare and some Medicare savings account, cost and private fee-for-service plans.

    Military Health Benefits

    • Active and inactive, past and present, members for the military have access to several of their own Medicare supplement plans. Veterans may apply for prescription drug coverage through the U.S. Department of Veterans Affairs. They are also free to join any other Medicare drug plan but cannot combine a VA plan with another Medicare prescription plan. Active-duty military, retirees and family members can apply for TRICARE benefits. If you are entitled to Part A Medicare, you must also have Part B to get TRICARE prescription services. If you have TRICARE, you do not have to join another Medicare drug plan, although you may do so if you like. If so, the Medicare drug plan will pay first and TRICARE second. If you have a Medicare Advantage plan which comes with coverage for prescription drugs, however, you cannot use TRICARE for the same benefit.

    Standard Medicare Supplements

    • Several kinds of standardized Medicare supplemental policies offer even more health care services. These are offered through insurance companies, but not all are available in all states. These plans are usually listed as plans A through N, although some companies give them their own names. Plan A is a basic supplement, which includes 100 percent coinsurance for Part B services. Plan A also includes an additional 365 days of coverage after traditional Medicare ends for hospital benefits and the costs of the first three pints of blood per year. Medicare supplement plans then go on to include more benefits, such as skilled nursing facility coinsurance, the deductibles for Part A and B, preventive care and foreign travel emergencies. Plan F is a high-deductible plan, with lower premiums but more out-of-pocket costs. Plans K and L also have annual out-of-pocket limits.

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