When you start to look for a Medicare plan, you will soon learn that there are different plans available to you based on what your needs are. As you decide which plan is best, keep in mind what you may need in the future.
There are four parts of Medicare.
- Part A = inpatient hospital coverage
- Part B = outpatient medical coverage
- Part C = known as Medicare Advantage, available through private companies
- Part D = prescription drug coverage
Medicare Supplement plans, also called Medigap, are designed to work with Original Medicare Parts A and B. Medigap policies help pay for some health care costs not covered by Original Medicare, such as deductibles, coinsurance and foreign travel emergency.
These plans are offered by private insurance companies and are available to people with Medicare Part A and B.
People with Original Medicare and a Medicare supplement can choose any stand-alone Part D prescription plans to pay for their drugs.
People who are enrolled in Medicare Advantage plans (Part C) are not eligible for a Medicare Supplement insurance policy.
Medicare coverage is based on 3 main factors
- Federal and state laws.
- National coverage decisions made by Medicare about whether something is covered.
- Local coverage decisions made by companies in each state that process claims for Medicare. These companies decide whether something is medically necessary and should be covered in their area.