Original Medicare vs. Medicare Advantage: What’s the Difference?
When you are researching the ideal insurance plan in Michigan, chances are you have come across Medicare. Medicare is a type of federal insurance program that contains three parts, which include Hospital Insurance (Part A), Medical Insurance (Part B), and Prescription Drug Coverage (Part D).
Currently, Medicare offers two plans: Original Medicare and the newly offered Medicare Advantage. As a trusted insurance advisor in Troy, Michigan, we will discuss the key differences between the two plans to help you make an informed decision.
- Original Medicare.
Original Medicare offers both Plan A and Part B in their coverage. However, if you need prescription drug coverage, you can also apply for a separate Part D plan. The advantage of this plan is the ability to use any hospital or doctor that accepts Medicare across the United States. To help pay for any out of pocket costs, you have the option to buy supplemental coverage or Medigap. You may also use coverage provided by a former employer, union, or Medicaid.
Moreover, Original Medicare does not usually require a referral to set an appointment with a specialist. This plan covers most medically necessary services and medical supplies. Nonetheless, the plan does not cover some benefits, such as eye exams, routine exams, and most dental care services.
- Medicare Advantage.
Also referred to as Part C, the Medicare Advantage Plan is considered an all-in-one alternative to the Original Medicare plan. The advantage of choosing Medicare Advantage is a bundled plan that contains Part A, B, and D. As a result, this option offers lower out of pocket costs compared to the Original Medicare. It’s important to note, however, that this plan requires you to use doctors and hospitals that are in their network in most cases.
Medicare Advantage also offers additional benefits that the Original Medicare plan does not offer. This includes vision, hearing, dental, and many more, which makes it an ideal option for individuals under the American Association of Retired Persons (AARP). Unlike Original Medicare, Part C usually requires a referral to see a specialist.
More than that, Medicare Advantage has a yearly limit on the amount you pay out of pocket for the services that Medicare Part A and B covers. Once you reach your limit for the year, you won’t have to pay for Part A and B services for the remainder of the year.
Which of these two insurance plans is most suitable for your needs? To discuss your insurance options, we at American Insurance Advisors are more than happy to assist you. We offer a broad range of insurance services, which include Medicare supplement, income protection, life insurance, safe retirement, and more.