Citizens 65 and over are provided health care insurance through this government program. The reason for supplemental plans is that while Medicare pays for in-patient treatment, it doesn’t make payouts to any out-patient needs, such as doctor visits, medication, x-rays, or long term care. Medicare is generally referred to as Part A, while initial supplemental insurance is referred to as Part B. This secondary plan was set into place to help Medicare beneficiaries pay for services not covered by Part A.
Part B handles everything but prescription drugs. This is why many people turned to alternative private Medicare plans which where referred to as Plan C or Medicare + Choice, now known as Medicare Advantage (MA). With this private health insurance plan beneficiaries where able to take advantage of prescription drug coverage.
Originally the term referred to supplements offered by private companies and approved by The Centers for Medicare and Medicaid Services (CMS). Medigap is now commonly used for most health care insurance supplements. In 2006, the original Medigap plan was replaced by Part D for prescription drug use. However, anyone who signed on to Medigap before January 1st of that year was able to keep their Medigap coverage.
In order to get any other coverage it’s mandatory to have both Part A and Part B. The most complimentary and complete coverage package is Part C, or Medicare Advantage. Medicare Advantage is structured to fill in any gaps of A and B. This privatized supplement has many custom private fee-for-service plans as well as prescription medication fulfillment.
Although the best and most complete coverage to date would be Parts A, B and Medicare Advantage, potential beneficiaries must weigh any options to find not only what suits their lifestyle but pocketbook.