Medicare Basics

• Original Medicare Part A provides hospital insurance, while Part B covers doctors' services, outpatient care and similar expenses. Both parts have deductibles, copayments and coinsurance, and Original Medicare does not cover all expenses. If you have Part A or B and want prescription drug coverage, you must buy Medicare Part D.
  
  

Medicare Supplement

• A Medicare supplement (also called a Medigap plan) is designed to cover some of the expenses that Original Medicare Parts A and B do not cover. You must have both Medicare Part A and B to buy a Medicare supplement. Medicare requires that Medigap insurance companies sell only standardized Medicare supplements. These plans, each with specific required benefits, use the letters A through N as designations. Usually, the only difference between plans with the same letter is cost. However, the rules for Medicare supplements are different in Massachusetts, Minnesota and Wisconsin than in other states.
  
  

Medicare Advantage

• When you enroll in Medicare, you can choose either Original Medicare Parts A and B or you can enroll in Medicare Part C, also known as a Medicare Advantage Plan. You buy an Advantage Plan from a Medicare-approved private insurance company. These plans must include all the services of Original Medicare Parts A and B, except hospice care (Original Medicare will still cover your hospice care).
  
  

More About Advantage Plans

• Advantage plans may also provide extra coverage that Original Medicare does not provide, such as vision and dental benefits. Most Advantage Plans also cover prescription drugs (Medicare Part D). The costs, extra coverage and rules vary depending on the specific plan. According to Medicare, if you join a Medicare Advantage Plan, you don't need Medicare supplemental insurance.