medicare options

There is additional coverage you can get from private insurance companies after you receive Original Medicare. 

You might know that Original Medicare has deductibles and coinsurance costs. The Original Medicare 20% coinsurance can set you back thousands of dollars in the event of a major illness.  You also might know that Original Medicare doesn’t offer prescription drug coverage.  You can buy a Prescription Drug Plan but only from private insurance companies. These additional coverage options protect you from Original Medicare medical and hospital out-of-pocket costs.

There are two options to consider that lower your out-of-pocket costs beyond Original Medicare:

1. Medicare Supplement Plans (also called Medigap) and Stand-Alone Prescription Drug Plan
2. Medicare Advantage Plans* (Medicare Part C)

There are advantages and disadvantages to each option.  You cannot get both options at the same time (You must choose one or the other).  You could consider just adding to Original Medicare a Stand-Alone Prescription Drug Plan.  However, your liability can be very high in the event you have a catastrophic illness or major accident.  Besides, if you worry about the cost, you can actually get a Medicare Advantage plan that also includes a Prescription Drug Plan at no cost to you.   

*Medicare Health Plans includes Medicare Advantage Plans and other types like Medicare Cost Plans, Demonstrations/Pilot Programs and Programs of All-inclusive Care for the Elderly (PACE).   I only work with Medicare Advantage plans.  See Medicare.gov  or these other types.

Let examine both.