There are four different parts of Medicare: Parts A, B, C, and D. Part A covers inpatient expenses. Part B covers outpatient expenses. And Part D covers prescription drug costs. But what about Part C?
Part C is another way of referring to Medicare Advantage. Medicare Advantage is the private alternative to Original Medicare. Understanding the difference between Medicare Advantage and Original Medicare can be tricky. Read on to learn more.
Original Medicare Overview
Original Medicare consists of two parts: A and B. Part A, which covers inpatient healthcare costs, is mandatory and generally free for people who have contributed during their working years. Part B is technically optional but highly advised as it covers outpatient costs such as doctor’s office visits. Part B has a monthly premium.
While enrolled in Original Medicare, you can generally add on Part D as it covers prescriptions.
Medicare Advantage Overview
Medicare Advantage is an alternative to Original Medicare for people who want privatized health insurance. Medicare Advantage plans are sold by private insurance companies but are mandated to cover all of the basics that Parts A and B of Original Medicare cover. Like any other type of health insurance, there are different types of Medicare Advantage plans. The types of plans include:
- Health Maintenance Organization (HMO)
- Preferred Provider Organization (PPO)
- Private Fee-for-Service (PFFS)
- Special Needs Plans (SNPs)
- Medical Savings Account (MSA)
Each type of plan has different advantages and disadvantages. Each plan will differ depending on your area, the company offering it, and the plan type.
Why Would Anyone Consider Medicare Advantage?
The advantage of Medicare Advantage plans depends on the plan itself. Most people who consider Medicare Advantage plans are looking for specific benefits. For example, some Medicare Advantage plans include dental, vision, and hearing benefits, which Original Medicare does not cover. Other plans can include prescription drug coverage in one plan and limit yearly out-of-pocket expenses. Some plans may also include coverage for transportation costs, gym memberships, and chronic care.
How Do I Choose?
Choosing between Original Medicare and Medicare Advantage depends on many factors. Understanding which plan is right for you requires experience and guidance, both of which we have! Contact us today to learn more about Original Medicare and Medicare Advantage.