Medicare has four basic parts: A, B, C, and D. Parts A (hospital care), B (doctors, medical procedures, equipment), and D (prescription drugs). What these parts don’t cover, such as deductibles, co-pays, and other medical expenses that could clear out your savings should you become seriously ill. That’s where Part C comes in, also known as Medicare Advantage. The other option is Medicare Supplement, also known as Medigap coverage.
Medicare Advantage
A Medicare Advantage Health Plan (Medicare Part C) may provide more help at a lower cost than traditional Medicare. Instead of paying for Parts A, B, and D, a person would enroll through a private insurance company that, in many cases, covers everything provided by Parts A, B, and D and may offer additional services. The beneficiary would pay the Medicare Advantage premium if there is one along with the Part B premium which can be automatically deducted from the person’s social security check.
Medicare Supplement/Medigap
Medicare Supplement Insurance (Medigap) coverage helps pay some of the health care costs that Original Medicare doesn’t cover like copayment, coinsurance, and deductibles. Medigap policies are sold by private companies. Most individuals pay their premiums and the remaining health care cost is covered by the Medigap policy. Most Medigap polices do not cover prescription drug coverage, dental, and vision.