Building Complete Coverage
Many retirees buy additional insurance to cover the things Original Medicare (Parts A and B) doesn't cover completely. Here's why:
- To get more complete medical and prescription drug coverage. Remember, Parts A and B only cover inpatient and basic outpatient services, not prescriptions.
- To control their out-of-pocket medical spending. Without additional coverage, retirees may need to pay the full cost of anything not covered completely by Medicare Parts A and B.
- To gain peace of mind. Knowing they have secured comprehensive coverage that protects them beyond basic Medicare A & B is comforting.
There are 2 primary types of Medicare plans:
Medicare Part C
Covers medical and usually prescription drugs.
Medigap + Prescription Drug
Covers medical and prescriptions when combined with Medicare Part D.
Details - Medicare Advantage
- Works in place of Medicare coverage provided by Parts A and B
- Plans usually have lower premiums than Medicare Supplement coverage, but typically include copayments or coinsurance costs
- Often covers services that Original Medicare doesn't cover like preventive, dental, vision, etc.
- Generally, you are required to visit an in-network doctor
- Remember, you will still be responsible for paying your Medicare Part B premium
Details - Medigap
- Plans usually have higher monthly premiums than Medicare Advantage, but lower out-of-pocket costs
- Pays its share of medical expenses after Parts A and B pay their shares
- Can cover some or all of your medical copayments, coinsurance and deductibles
- Offers flexibility in choosing doctors
Details - Prescription Drugs