Chapter 4: Two Kinds of Medicare

Chapter 3: Enrollment

How do you know which Medicare plan is right for you? Let’s look at the options. There are two kinds of Medicare plans:

  1. Original Medicare, also referred to as Medicare
  2. Medicare Advantage Plan

Original Medicare and Medicare Advantage Plans both offer Parts A, B, and D. In addition, Original Medicare Plans offer Medicare Supplement Insurance, while Medicare Advantage Plans offers Part C.

  1. Part A (Hospital Insurance): Hospital insurance helps pay for inpatient care in a hospital or skilled nursing facility (following a hospital stay), some home health care expenses, and hospice care (see chapter 5)
  2. Part B (Medical Insurance): Medical insurance helps pay for doctors’ services and many other medical services and supplies that hospital insurance does not cover. (see chapter 6)
  3. Part C (Medicare Advantage Plans ONLY): If you have Medicare Parts A and B, you can join a Medicare Advantage plan (optional). Medicare Advantage plans are offered by private companies and approved by Medicare. These plans generally help you pay the medical costs not covered by Medicare Parts A and B. (see chapter 9)
  4. Part D (Prescription Drug Coverage): Prescription drug coverage (optional) helps pay for medications doctors prescribe for treatment. (see chapter 7)
  5. Medicare Supplement Insurance (Original Medicare ONLY): Adds additional coverage (optional) above Parts A and B, such as Medigap, to cover the gaps in Original Medicare Plans. (see chapter 8)
Chapter 5: Medicare Part A (Hospital Coverage)