So, you just turned 65 and need some help navigating your Medicare plan choices. Just follow the steps below to decide which of the Medicare plan choices is best for you.
First, you need to make the decision whether you want Original Medicare or a Medicare Advantage Plan. Here are the differences.
Original Medicare
This is Medicare Part A (Hospitalization) and Medicare Part B (Medical Insurance)
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Medicare provides this coverage.
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You have your choice of providers, doctors and hospital.
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Either you or your Medicare Supplemental Insurance Plan pays the deductible for your medical appointments (typically 20%).
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You pay a monthly premium for Part A. You are automatically enrolled in Medicare Part A.
Medicare Advantage Plan
This is also known as Medicare Part C and includes both Part A and Part B
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A private insurance company that is approved by Medicare provides this coverage.
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You need to use plan approved doctors or hospitals or risk having to pay all the costs.
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You will pay a monthly premium.
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The rules and extra costs vary plan so make sure to find out all the particulars before applying.
After this, the next of the Medicare plan choices you need to make is whether or not you want Medicare Part D, the prescription drug coverage offered by Medicare.
If you do, you must join a Medicare Prescription Drug Coverage Plan. These plans and companies are approved by Medicare.
If you originally chose a Medicare Advantage Plan, and that company offers Medicare Prescription Drug Coverage, you must buy it through that company.
The last of the choices you will have to make is whether or not to get a Medicare Supplemental Insurance Plan. This is an insurance policy through a private insurance company if you have Original Medicare, Part A and Part B. This will pay the 20% co-payment that Medicare does not pay for Medicare Part B.
Note: If you join a Medicare Advantage Plan, you don't need a Medigap policy. If you already have a Medigap policy, you can't use it to pay for out-of-pocket costs you have under the Medicare Advantage Plan. If you already have a Medicare Advantage Plan, you can't be sold a Medigap policy.
