Options you can pick if you have Original Medicare
Different parts of Original Medicare
Answers:
Different kinds of Medicare coverage: You're right. Each "part" covers something different. Part A (hospitalization) and Part B (medical) are included in Original Medicare, but you can choose to get your Parts A and B coverage through a Medicare Advantage (Part C) plan offered by a private insurance company instead. Part D is prescription drug coverage. You can buy a stand-alone Part D plan from a private insurance company. Or you can get it through a Medicare Advantage plan that includes Part D.
Options you can pick if you have Original Medicare: True. If you're enrolled in Original Medicare (Parts A & B), you have the option of getting your Parts A and B through a private company by signing up for a Medicare Advantage (Part C) plan. Often that's smart, because Medicare Advantage plans include your Parts A, B and in many cases your Part D, plus some extras like predictable copayments and deductibles. Remember, you must continue to pay your Part B premium to the federal government.
Different parts of Original Medicare: No. Original Medicare is just Part A (hospitalization) and Part B (medical).
What's a Medigap plan?
Choose the best answer:
An insurance plan I can buy that includes Medicare parts A, B and D
It's the same as Medicare Part C
A supplemental insurance plan that covers costs that Original Medicare doesn't
Answers:
An insurance plan I can buy that includes Medicare parts A, B and D: No, a Medigap plan, also called a Medicare supplement plan, is extra insurance you buy when you have Original Medicare. It typically covers the remaining 20% of hospital and medical costs that Original Medicare (Parts A and B) doesn't cover. Medigap plans don't include Part D prescription drug coverage.
It's the same as Medicare Part C: Not quite. Part C is a Medicare Advantage plan which is different from a Medigap plan. A Medigap plan is extra insurance you buy to help pay the remaining 20% of hospital and medical costs that Original Medicare (Parts A & B) doesn't cover. It doesn't include Part D prescription drugs.
A supplemental insurance plan that covers costs that Original Medicare doesn't: Yes. A Medigap plan, also called a Medicare supplement plan, typically covers the 20% of hospital and medical costs that Original Medicare (Parts A and B) doesn't cover. It doesn't include Part D prescription drug coverage.
What happens if I don't enroll in a Medicare Part D plan?
Choose the best answer:
Nothing, as long as I stay in my employer's health plan
I pay more for my prescription drugs
I will pay a penalty
Answers:
Nothing, as long as I stay in my employer's health plan: That could be true. But you'll need to prove that you've had employer coverage the whole time if you want to enroll in Part D later (if you leave your employer's plan or it runs out of money, for example) - otherwise, it will cost you more in penalties every month.
I pay more for my prescription drugs: Yes. You'll pay 100% of your prescription drug costs. The monthly premium for a Part D prescription drug plan may be less than what you'd pay for the full cost of your drugs. If you don't sign up for Part D when you're eligible or you don't have creditable coverage (coverage as good as Original Medicare) through an employer, the VA or other such resources, you may pay a penalty when you do sign up for Part D.
I will pay a penalty: It depends on your situation. If you have creditable coverage (coverage as good as Original Medicare), there is no penalty. If you don't have creditable coverage and you miss your enrollment period for Part B, a late-enrollment fee will be added to your monthly premium once you do enroll. This fee will continue for as long as you have Medicare. The fee is based on the following calculation: 1% of the national base premium for that year for every month you were eligible but not enrolled.
