The Different Types of Medicare Plans

Author:- David Mitchell MBA, MA.HR, SPHR, SHRM-SCP,
CIC (Certified Insurance Counselor)

People who enroll in a Medicare plan in the United States have a number of different options, and making the choice of which type of Medicare plan to enroll in will depend on their individual budget, circumstances, overall health and personal preferences.

Original Medicare and Medicare Advantage are the two main types of Medicare coverage, though under original Medicare there are also a number of subcategories.

There are four different parts to Medicare plans. Part A covers inpatient hospital care, including hospice care, home health care under certain criteria and skilled care in nursing homes. Monthly premiums will not have to be paid if the individual concerned paid Medicare taxes while working, though those who paid an insufficient amount can buy this coverage.

A monthly premium is required for Medicare Part B, which covers healthcare provider services including doctors that Part A does not cover, with co-pays and deductibles applicable.

Medicare Part C is Medicare Advantage, which is sold and administered privately, although any plan must still be approved by Medicare. These plans offer the same coverage as A and B but can also include coverage for prescription drugs.

Part D offers coverage for prescription drugs for a monthly premium, which is in addition to other Medicare plan type premiums.

There are also types of Medicare supplement insurance, called Medigap, which provides coverage of certain out-of-pocket expenses for those already covered by Medicare A and B. There are various methods of pricing Medigap plans, and the price can vary between states.