Parts A and B together are called Original Medicare. Most people do not choose Original Medicare on its own because it does not provide prescription drug coverage and can leave patients exposed to bills not covered by Parts A and B alone.
Although Original Medicare never includes prescription drug coverage (Part D) automatically, it can be added for an additional fee.
Medicare Supplement
Original Medicare can also be combined with Medicare Supplement plans offered through private insurance companies. Medicare Supplement is sometimes referred to as “Medigap.” These plans provide care through any provider in the US that accepts Original Medicare. There are several Medicare Supplement plans, labeled Plans A – N, each with coverage options. This chart compares each plan’s basic benefits. Plan G is currently the most comprehensive plan available to new Medicare recipients.
Because the benefits of Medicare Supplement plans are similar across all insurance companies, cost is the most significant difference between these options. A monthly premium for these plans is paid to your private insurance company in addition to the monthly Plan B premium.
Example Cost for Original Medicare plus prescription drug coverage and Medicare Supplement:
$0 (Part A) + $148.50 (Part B) + $14 (Part D) + $129 (Medicare Supplement) = $291.50/month
Medicare Supplement plans generally do not include extra benefits, so patients may need a separate policy to cover hearing, vision, dental, etc.
90% of Capital Realm Insurance clients choose either a Medicare Supplement or Medicare Advantage plan. In both cases, Alex almost always recommends including prescription drug coverage (Part D) in your plan. Contact him to find the best Medicare Supplement plan for you!