What You Need To Know About Medicare Plans
There are big differences between Original Medicare, Medicare Advantage Plans and Medicare Supplements Plans (Medigap) First of all, the Federal Government provides the coverage in Original Medicare (Parts A & B). Medicare Advantage (Part C) coverage is provided by private insurance companies, and Medicare supplements (Medigap) coverage is provided by private insurance companies.
The way they are funded is also different, Original Medicare (Parts A & B) is funded by payroll taxes. Medicare Advantage (Part C) receives “a fixed amount per enrollee per month from Medicare” plus the beneficiary’s Part B premium. It is also allowed to charge a premium to the member. In Medicare Supplement Plans (Medigap) the premiums are paid by the policy holder.
It is also VERY IMPORTANT to know that your coverage is GUARANTEED, and can’t be cancelled with Original Medicare through the Federal Government. However, you should know that your policy can be cancelled under Medicare Advantage which is provided by private insurance companies. Medicare Supplement Plans (Medigap) can’t be cancelled unless you don’t pay your premiums on time or you misrepresented something on your application.
It is also important to note that Original Medicare does NOT require pre-certification. But, Medicare Advantage (Part C) generally does require pre-certification. Also, Medicare Supplement Plans (Medigap) does not require pre-certification.
NOTE: Modern Senior Products does not recommend any Medicare plan. This information is only for your information. Be sure to learn about all three kinds, Original Medicare, Medicare Advantage, and Medicare Supplement (Medigap) to see which is best for you. Remember, you can start signing up for Medicare 3 months before your 65th birthday.
Posted on February 13, 2012, in Medicare, Uncategorized and tagged Affordable Care Act, Insurance, Kathleen Sebelius, Medicare, Medicare Advantage, Medicare Supplement Plan, Medigap, Original Medicare, United States Department of Health and Human Services. Bookmark the permalink. 2 Comments.