Medicare Part
C Vs. Medicare Supplement
When Americans become eligible for Medicare, typically at age 65, most are not aware that Medicare pays only about 80 percent of their medical costs. To obtain coverage beyond what Medicare pays, seniors have the option of buying a Medicare supplement or obtaining coverage under Medicare Part C.
How Medicare Supplements Work
Medicare supplements, also called Medigap policies, are offered by private insurers but overseen by the government. Companies offering a specific Medigap policy must all provide identical coverage, but may set their own prices.
How Part C Plans work
Medicare Part C--also called Medicare Advantage--is offered by private insurers who also provide Medicare Part A and B services. The companies determine the benefits they will offer and what they will charge.
Cost Structure
Medicare supplements charge a monthly premium, which covers nearly all of the services provided. Under a Part C plan, customers will pay a smaller monthly premium but will pay co-pays for each service provided.
Which Way to Go?
The choice between a Medicare supplement and a Part C policy is a personal one. Medigap policies allow for easier financial management, as there are usually no unexpected costs beyond the monthly premium. With Part C policies, the cost of co-pays with each service use can add up, but for seniors who are generally healthy, the low monthly premiums can make them an economical option.
Choose Wisely
Once a Part C policy is purchased, it may be difficult to drop that coverage and return to a Medicare supplement. Insurers at that point may refuse coverage or charge much higher premiums.
Tags: Medicare Part, Medicare Part Medicare, monthly premium, Part Medicare, each service, Medicare pays, Medicare supplement
