1. What Is Medicare?

Medicare is a federal health insurance program for:

• People aged 65 and older
• Some younger individuals with disabilities
• People with End-Stage Renal Disease (ESRD)

Medicare has different parts that cover specific services.

2. The Four Parts of Medicare

Part A – Hospital Insurance

• Inpatient hospital care
• Skilled nursing facility care
• Hospice
• Some home health care
  Usually free if you paid Medicare taxes while working

Part B – Medical Insurance

• Doctor visits
• Outpatient care
• Preventive services
• Some home health care
  Monthly premium required

Part C – Medicare Advantage Plans

• Offered by private insurance companies
• Includes all services under Part A and B
• Most include Part D (drug coverage)
• May offer extra benefits like vision, dental, hearing
  You may need to use in-network providers

Part D – Prescription Drug Coverage

• Helps pay for medications
• Available through standalone plans or Medicare Advantage
  Plans vary in cost and drug list (formulary)

3. What Are Medicare Supplements (Medigap)?

Medigap plans help cover the “gaps” in Original Medicare (Parts A & B), such as:

• Copayments
• Coinsurance
• Deductibles

Key features of Medigap:

Can’t be combined with Medicare Advantage

Sold by private insurance companies

Standardized by federal law (Plans A–N)

You must have Parts A and B

Does not include prescription drug coverage

4. Choosing the Right Option: Key Considerations

Choose Medicare Advantage if you:

• Want all-in-one coverage
• Are okay with provider networks
• Prefer lower premiums (may include extra benefits)

Choose Original Medicare + Medigap if you:

• Want flexibility in choosing providers
• Travel frequently or live in multiple states
• Want predictable out-of-pocket costs

5. Helpful Tips

• Compare plans yearly during the Annual Enrollment Period (Oct 15 – Dec 7)
• Use the Medicare Plan Finder tool
• Check if your doctors and medications are covered
• Work with a licensed Medicare advisor if you’re unsure

Conclusion

Understanding the different parts of Medicare—and how Medigap fits in—can save you money and ensure peace of mind. Take time to explore your options, compare plans carefully, and choose what works best for your health needs and budget.

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