Original Medicare is a fee-for-service health plan that has two parts:
• Part A (Hospital Insurance)
• Part B (Medical Insurance)
♦ Medicare is federal government administered health insurance program for people 65 and older and certain younger people with disabilities. Medicare started in 1966.
Like any other health insurance, you have to pay a share of approved charges in the form of coinsurance and deductibles.
Many people purchase supplemental insurance to help pay these portions.
Others have jointed Medicare Advantage Plans called Part C. The advantage plans coordinate services and pay claims.
♦ Many advantage plans have lower coinsurance and lower deductibles than original Medicare.
Most advantage plans provide prescription drug benefits eliminating the need to purchase separate prescription drug coverage called Part D.
♦ During open enrollment you can switch advantage plans or switch back to original Medicare.