Part A - Hospital Insurance

Generally, Medicare Part A helps pay for inpatient care at hospitals, Critical Access Hospitals (limited outpatient and inpatient services to people in rural areas), and Skilled Nursing Facilities. It also helps cover hospice care and some home health care. Most people obtain Part A when they turn age 65 and do not have to pay a monthly payment for Part A because they or their spouse paid into Medicare through Social Security.

Cost: Most people receive Part A automatically when they turn age 65. They do not have to pay a monthly payment for Part A, because they or their spouse paid into Medicare through Social Security. 

Part B - Medical Insurance

Part B helps pay for doctors, and medically necessary services or supplies that meet accepted standards of medical practice to diagnose or treat your condition. In addition, Part B covers many preventative services or screenings like the flu shot or cardiovascular or diabetes screening. Part B covers ambulance services, Durable Medical Equipment (DME) or Oxygen Equipment and accessories. 

Cost: Some people automatically get Medicare Part B (medical insurance), and some people need to sign up for Part B. If you do not sign up when you are first elegible, you may have to pay a late enrollment penalty.

Part C - Medicare Advantage Plans

Medicare Advantage plans are offered by private insurance companies as an alternative to Original Medicare (Parts A & B). These plans are government regulated and subsidized and people with Medicare can get their coverage through Original Medicare (the traditional fee-for-service program that is Parts A & B) or from a private Medicare Advantage plan otherwise known as Part C. Coverage may include Medicare Part D prescription drug coverage as well as hospital, doctor, skilled nursing, and other medical services. Depending on where you live, you may enroll in a Medicare Advantage Plan offering one or more of the following types of health care: HMO, PPO, PFFS.

Part D - Prescription Drug Plans

Part D Plans are offered by private companies to provide coverage for prescription drug costs. Part D plans are government regulated and subsidized. Medicare Part D is the federal government's prescription drug program that covers both brand-name and generic prescription drugs at participating pharmacies in your area. Part D is optional and offered to everyone with Medicare by insurance companies approved by Medicare. Even if you don't take prescriptions drugs now, you may consider getting Medicare drug coverage to avoid paying a late enrollment penalty if you join a plan later.

Medicare Supplement Insurance (Medigap)

Medicare Supplement Insurance is an insurance you can buy from a private health insurance company to help pay your share of out-of-pocket costs in Original Medicare (the traditional fee-for-service program that is Parts A & B). Generally, you must have Original Medicare (Part A - Hospital Insurance) and Part B (Medical Insurance) to buy a Medicare Supplement (Medigap) policy.

Medicare Supplement Insurance (Medigap) or Medicare Advantage? 

Medicare Supplement might be good for Medicare-elegible persons who:

• Like to choose their own doctors and hospitals
• Often travel
• Do not want any co-pays (available on select plans)

Medicare Advantage might be good for Medicare-elegible persons who:

• Are on a limited budget
• Don't mind a network of doctors and hospitals
• Don't mind having some co-pays
• Would like additional benefits beyond Medicare