Medicare Part C and Original Medicare

When you become eligible for Medicare you have the option of staying in Original Medicare or opting for Medicare Part C (Medicare Advantage) which is a private health plan that contracts with Medicare to provide your Part A and Part B benefits. Here are a few things you need to know about these types of plans.

Medicare Advantage Details

Medicare Advantage replaces Original Medicare, which means that you do not pay your premium to Medicare, but to a private provider. You basically trade the nationwide Medicare coverage for a local, HMO-type of network of doctors and hospitals and you generally get extra benefits like gym memberships, vision, dental, foreign emergency care, and Rx coverage. Unlike Medicare, Medicare Advantage plans have a max out of pocket costs, this is $6,700 in 2014, however many plans offer much lower out of pocket maximums. These plans usually have low to $0 monthly premiums.

Original Medicare covers Hospice costs even if you’re enrolled in a Medicare Advantage plan.

Medicare Advantage Hidden Costs

Many Medicare Advantage plans have deductibles that must be met before coverage kicks in, but this counts toward your out of pocket costs. The hidden costs is the copays. If you are a person who sees a doctor a lot these costs can add up and end up costing you more than if you had a first-dollar coverage plan like Medigap, even with Medigap’s more expensive monthly premium.

Medicare or MA Plan, Which is Right For You?

Honestly, it comes down to budget. If you’re on a tight budget a Medicare Advantage plan is a great option. If you a little extra money each month the Medicare/Medigap/Rx combo might be the right choice for you. If you don’t want supplemental coverage, and only want either Original Medicare or Medicare Advantage the choice is more of a personal decision. You will have decide if a limited network of doctors and hospitals is right for you and your needs in order to save some money each month.

For further questions about the difference between Medicare Advantage and Medicare call the number above or contact Senior65.com.