When you turn 65 or are ready to retire you may think that Medicare cover all of your medical costs for the rest of your life. Medicare does cover MOST of your medical costs but not all. Medicare has a rather large hospital deductible and pays only 80% of your Doctor and outpatient costs. This is way you should get a quote on a Medicare supplement plan. A Medicare supplement plan can pay these costs and leave you with very little out of pocket expense.
People will love the fact that Medicare supplement plans have NO network of doctors or hospitals. You can choose to see any doctor or go to any hospital that accepts Medicare - ANYWHERE in the USA.
A Medicare Advantage plan is a private health insurance plan approved by Medicare. You may opt to get your Part A,B and D benefits from a Medicare Advantage plan instead of traditional Medicare. These Medicare private insurance plans usually have an HMO or PPO network of doctors.
Medicare Advantage plans were created as an alternative to Original
Medicare and Medigap. By joining one of these plans, you direct
Medicare to pay the Advantage plans a set monthly amount for your
care. In return, the plan will deliver all of your Part A & Part B
services. They take on all of your medical risk.
You must continue to pay your Medicare Part B premium while enrolled in an Advantage plan. Yuo must be enrolled in both Medicare Part A and B and live in the plan's service area.
Medicare Advantage policies are NOT Medigap plans. They work differently because they pay instead od Medicare, not after Medicare.
Medicare Part D, the prescription drug benefit, is the part of Medicare
that covers most outpatient prescription drugs. Part D is offered
through private companies either as a stand-alone plan, for those
enrolled in Original Medicare, or as a set of benefits included with
your Medicare Advantage Plan.
Unless you have creditable drug coverage and will have a Special Enrollment Period, you should enroll in Part D when you first get Medicare. If you delay enrollment, you may face gaps in coverage and enrollment penalties.
Each Part D plan has a list of covered drugs, called its formulary. If your drug is not on the formulary, you may have to request an exception, pay out of pocket, or file an appeal.