Medicare Advantage Plans are health plan options that are part of the Medicare program. If you join one of these plans, you generally get all your Medicare-covered health care through that plan. This coverage can include prescription drug coverage. Medicare Advantage Plans include:
Medicare Health Maintenance Organization (HMOs) Preferred Provider Organizations (PPO) Private Fee-for-Service Plans Medicare Special Needs Plans
Medicare Advantage Plans (MA or MA-PDP) Medicare Advantage plans offer both health insurance coverage and optional drug coverage benefits (MA-PDP stands for Medicare Advantage Prescription Drug Plan). Coverage is usually offered through a network of doctors and health care providers. Medicare Advantage plans typically have higher co-pay amounts than a Medigap plan and may also require your primary care physician be in their network. However, Medicare Advantage monthly premiums are low. Some companies actually offer $0 premium plans and in some areas some plans will pay a portion of your part B premium (sometimes referred to as ’return of premium’).
Prescription Drug Plans (PDP) A PDP or Prescription Drug Plan provides insurance coverage for prescription drugs. Each insurer offering a PDP has a list of the medications they cover. It’s important to find a plan that covers the medications you are taking so as to minimize your overall drug expenses. These plans can be purchased on a stand-alone basis or in conjunction with a Medicare Supplement or Medicare Advantage plan. Co-pays and premiums are modest and the savings can be significant.
Medicare Supplement Insurance (Medigap) Medigap Plans extend health insurance beyond the benefits of Original Medicare. Medigap plans are among the most comprehensive additions to the Original Medicare benefit available. Medigap plans cover the difference between the expenses paid for by Medicare and the amount charged by a health care provider. In most states there are 12 types of Medigap plans and many plans have $0 co-pays. Some plan types have a small set of benefits beyond Medicare and others have extensive benefits beyond Medicare. Medigap plans do tend to have higher monthly premiums than Medicare Advantage plans and do not come with drug coverage. However, you can easily add a prescription drug plan (PDP) alongside your Medigap coverage.
