Medicare Plans

Medicare is a type of insurance that is run by the Federal Government which has many parts that are available to qualified individuals. Most individuals that are on Medicare may need additional health insurance to meet all of their health care needs. Medicare plans can offer additional coverages and benefits that are not available in the original Medicare plan.

The original Medicare plan that is run by the federal government does not contain a supplemental insurance option. Any gaps in coverage will need to be covered by supplemental insurance that is offered by a private health insurance organization. One type is an employee or retirement health plan from an employer sponsored or union. Another type is known as Medigap insurance which can be purchased from many private health insurance companies. A Medigap policy is only available when an individual is on or currently enrolled in the original Medicare plan.

A managed care plan includes a group of doctors and providers who have agreed to provide a service to plan members which called Medicare Advantage Plans. The most common type of managed care plan is known as an HMO or Health Maintenance Organization. These organization receive a fixed amount of money from Medicare for offering their services to Medicare members. Individuals on a managed care plan pay a low fixed premium each month for Medicare Part B and can have benefits not available on the original Medicare plan.

Another type of Medicare plan consists of a Medical Savings Account. Individuals that choose to have a medical savings account will have a plan that consists of two parts. One part consists of a Medicare (Medical Savings Account) Health Insurance Policy that will require individuals to pay a high deductible. The second part is a special savings account that is similar to a health savings account in which Medicare will deposit money each year to help pay for medical bills. This money can help pay for various health care costs until the deductible has been reached. A monthly premium will need to be paid for Medicare Part B.

There are many types of Medicare plans that an individual can choose from depending on the coverage that are needed. Each plan can have various effects such as costs, benefits as well as the choice of doctor. In addition a separate Medicare Prescription drug plan will be needed to have prescription drug coverage added to an existing Medicare plan.