How to Choose a Medicare Health Plan

Medicare is a federally funded health insurance plan for those 65 and older or for those with certain disabilities. Medicare is quite complex and tends to cause a lot of confusion for many who have the insurance. There are three options that you can choose, Original Medicare Part A and B, Medigap or Medicare Advantage. Original Medicare will be what Social Security will enroll you in automatically. You can later choose to enroll in a Medicare Advantage plan during open enrollment.

Instructions

• 1

  Examine your current Medicare plan. If you have not enrolled in the Medicare Advantage plan, then you are enrolled in the Original Medicare. This plan is a fee-for-service or an 80/20 split, which means you are responsible for 20 percent of your health-care costs.

• 2

  Determine whether you want to change. You are not required to change your Medicare plan.

• 3

  Explore the Medicare website for information on the Medigap policy. With this plan, you keep your Original Medicare and add a policy that covers the items that Medicare does not. This will cost a premium in addition to your Medicare Part B, and the premiums vary by company, so it's advisable to shop around.

• 4

  Explore the Medicare Advantage plans as well. Medicare Advantage works as an HMO or PPO; you pay flat co-pays for doctor visits and other medical services. You continue to pay your premiums to Medicare each month and the Medicare Advantage plan if it has a premium. Some Medicare Advantage plans have premiums, but others do not.

• 5

  Under Medicare Advantage, your prescription plan also will change. Make sure the new insurer covers all your medications. As with the Medigap policy, it pays to shop around, because plans vary greatly by price. The Medicare site is the best option to compare plans.

• 6

  Select your plan during open enrollment, which normally is the last six weeks of the year. It is possible to enroll directly on the Medicare site.