Comparing Medicare Plans

Like picking the right car when you’re looking to buy a new one, finding your ideal Medicare plan requires some research. The coverage offered by each plan and how much it charges for out-of-pocket costs (such as a deductible or copayment) can vary widely. But once you have a clear idea of what each plan covers, you’ll be able to make a smart decision. Reviewing your choices at the beginning of each year can also ensure you get to take advantage of any opportunities to save money or pick up additional coverage. Here’s a quick comparison of the main types of Medicare plans.

Standalone Part D Coverage

Typically, prescription drugs are not covered by Original Medicare, which includes Parts A and B. If you currently take prescription drugs, you can get coverage by opting for a stand-alone Part D prescription drug plan which you can take along with your Original Medicare, or by purchasing Medicare Advantage that offers prescription drug coverage. A stand-alone Medicare Part D plan usually has a modest premium, but this is something you will need to pay, whether you opt for coverage or not.

Medicare Supplement Insurance Plans

Medicare Supplement (also known as Medigap) plans cover the out-of-pocket costs you will have to bear if you have Original Medicare. These costs can include copayments, coinsurance, and deductibles. There are as many as 10 Medicare Supplement insurance plans labeled A, B, C, D, F, G, K, L, M, and N. It’s likely that you will only be able to purchase Medicare Supplement insurance once in your life, so think carefully about your decision. It’s important to know that these plans usually cover the coinsurance costs for Part A and the hospital costs for an additional 365 days once you use up your benefits.

Medicare Advantage Plans

Medicare Advantage plans should cover Medicare Part A (hospital insurance) and Medicare Part B (medical insurance) and provide as much coverage as Original Medicare, at the very least. Many, though not all, Medicare Advantage plans offer prescription drug coverage. Certain Medicare Advantage plans even offer additional benefits, such as routine vision, dental, hearing, and fitness benefits.