Aon

Building Complete Coverage

First Things First

You must be enrolled in original Medicare through the Social Security Administration before you can start building on your coverage. Reach Social Security by:

 

Download a free copy of "Making Sense of Medicare."
This guide contains information to help you understand your Medicare options, make a well-Making Sense of Medicareinformed coverage decision, and enroll in a plan.

 






For even more information, the Centers for Medicare & Medicaid Services (CMS) offer a "Medicare & You" handbook.

Click Here to Download a Copy

Original Medicare Basics

Original Medicare is a low-cost government insurance program that guarantees access to health insurance for Americans age 65 and older and younger people with certain medical disabilities. It pays for many health care expenses but not all. Medicare covers its share of an approved amount and you pay the rest through deductibles and coinsurance. Original Medicare is made up of two parts:

Part A:Hospital insurance which helps cover inpatient care in hospitals and skilled nursing facilities, hospice care, and home health care. Most people do not pay a monthly premium for Part A.

Part B:Medical insurance which helps cover medically necessary doctor services and visits, lab tests, outpatient care, durable medical equipment and supplies, ambulance services, and preventative care. Part B carries a monthly premium.

Your options for more comprehensive coverage

Private insurance companies on the Aon Retiree Health Exchange offer plans with monthly premiums to help cover costs that Original Medicare does not. Instead of paying doctors and hospitals directly, the government pays these private insurers to administer your plan. These options cover all or part of the deductible for Original Medicare Part A, as well as Part B co-insurance and deductibles, and keeps all the benefits and services covered under Original Medicare. You may also add prescription drug coverage or routine dental and vision care.

Use the Plan Type Selector to help simplify coverage options.

Side-by-Side Comparisions of The Most Complete Options

 

MAPD

Medicare Advantage Bundled With Prescription Drug

MEDIGAP + PART D

Medicare Supplement (Medigap) Plus Prescription Drug

Your Choices

The doctors and hospitals are part of a provider network (HMO and PPO) so you need to be sure your providers are included. With a PPO, you get an extended network but cost is higher.

You can use any provider that accepts Medicare. Cost is the same for all providers.

Out-of-Pocket Costs

Monthly premiums are typically lower, leading to lower total out-of-pocket cost if you don't frequently use medical services. If you do have higher usage, costs can vary for expected OR unexpected services.

Monthly premiums are typically higher, but if you use services often, out-of-pocket costs are limited. Out-of-pocket cost can be higher if you don't use services. Monthly costs are more dependable.

We recommend that you compare the total estimated out-of-pocket cost between MAPD and MEDIGAP + Part D to see whether the difference impacts you.

Option 1

Medicare Advantage (Part C) Bundled With Prescription Drug (Part D) = MAPD

 

Original Medicare Insurance

1 Or 2

Medicare Advantage bundled with a Prescription Drug Plan

Medicare Supplement Plan

Medical Coverage

Prescription Drug Plan

Prescription Coverage

+

Bundles Part C; D Plans into a single complete plan

Part C, also known as Medicare Advantage (MA)*: Network-based like a HMO or PPO, these plans combine all the benefits covered under Original Medicare into one policy with greater financial protection. 

Part D: Prescription Drug Plans help pay for medications you may need.

Why it makes sense:With a select provider network to contain costs (be sure your doctors and hospitals are in the carrier’s network), Medicare Advantage bundled with a built-in Prescription Drug Plan (MAPD) covers more than Original Medicare and is the most complete option. Plus, many Medicare Advantage plans offer additional hearing, vision, and dental benefits. This combination reduces or limits out-of-pocket medical costs, and premiums are generally lower than Medicare Supplement (Medigap) options.

Considerations:Medicare Advantage plans are less predictable from a monthly out-of-pocket perspective because you pay for services if and when you use them.

Option 2

Medicare Supplement (Medigap) Plus Prescription Drug = MEDIGAP + PART D

 

Original Medicare Insurance

1 Or 2

Medicare Advantage bundled with a Prescription Drug Plan

Medicare Supplement Plan

Medical Coverage

Prescription Drug Plan

Prescription Coverage

+

Combines two separate plans for remaining coverage needs after Original Medicare

Medicare Supplement, also known as Medigap*: Pays some of the health care costs that Original Medicare doesn’t cover, like copayments, coinsurance, and deductibles.

Part D: Prescription Drug Plans help pay for medications you may need.

Why it makes sense: Medicare Supplement(Medigap) pays secondary to Original Medicare and is designed to cover the costs that remain after approved Parts A and B have been paid. These plans give you flexibility when choosing your doctors — you can go to any doctor or hospital that accepts Medicare — and monthly out-of-pocket costs are more predictable.

Considerations: Premiums and total out-of-pocket costs can be higher than Medicare Advantage.

alert-copy.png Changes are coming: New enrollees on or after January 1, 2020 will no longer have the option of Medicare Supplement Plans C or F.

Under the Medicare Access and CHIP Reauthorization Act (MACRA), Plans C and F will soon be replaced by new plans that do not cover the Part B deductible. This change will not affect those who are already enrolled in Plans C and F, but premiums may be higher to cover the cost of the Part B deductible.

*You cannot have Medicare Advantage and Medicare Supplement at the same time.

Alternate Option

Original Medicare (Parts A and B) plus a Prescription Drug Plan (Part D)

 

Original Medicare Insurance

1 Or 2

Medicare Advantage bundled with a Prescription Drug Plan

Medicare Supplement Plan

Medical Coverage

Prescription Drug Plan

Prescription Coverage

+

Protection from the high cost of prescription drugs outside of Original Medicare

Why it makes sense: Original Medicare (Parts A and B) does not include prescription drug coverage, so this option adds a stand-alone prescription drug plan (Part D).

Considerations: Parts A and B only cover inpatient and basic outpatient services, leaving retirees to pay the full cost of anything not completely covered.

Comparing Medicare Advantage & Medigap Plans
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