Understanding Your Medicare Options

Choosing the Medicare coverage that fits your needs means deciding between Original Medicare (Parts A and B) and Medicare Advantage (Part C).

Here is a closer look at how they differ.

Original Medicare

Original Medicare consists of Part A, which covers hospital insurance, and Part B, which covers medical insurance. If you want help paying for prescription drugs, you can enroll in a separate Part D plan. You may also purchase supplemental coverage to help with out-of-pocket expenses under Original Medicare, such as the 20% coinsurance. One advantage is that you can see any doctor or visit any hospital anywhere in the United States that accepts Medicare. Supplemental options can include a Medicare Supplement Insurance policy, often called Medigap, or coverage provided through a former employer or union.

Medicare Advantage, or Part C

Medicare Advantage is an all-in-one alternative to Original Medicare. These bundled plans include Part A, Part B, and usually Part D. They may also offer lower out-of-pocket costs than Original Medicare. In most cases, however, you must use doctors and hospitals that are part of the plan’s network. Many of these plans also include extra benefits that Original Medicare does not cover, such as vision, hearing, dental, and more.

Open Enrollment runs from October 15 through December 7, with changes taking effect on January 1, so plan updates are possible. Many plans are adjusting coverage or deductibles, including changes to Part D prescription drug plans.

Be sure to review any notices or emails from your insurance companies so you stay informed about changes that may affect your coverage.

Marty Pay, MBA, CLU, served as the local Farmers agent for more than 30 years. He now works out of his former office, helping with Medicare Supplements and Medicare Advantage plans for several companies writing policies in the area. He can be reached during Open Enrollment at (661) 333-1355.