Private insurance companies have the choice of selling any of the various Medigap plans for Medicare supplement insurance, but are required to offer at a minimum, Plan A to all qualified Medicare participants in every state. Plan A contains the basic benefits, which pays for expenses not covered by Medicare Part A and B. Of all of the Medigap plans Medicare supplement Plan A is the most affordable due to the least amount of benefits available. All other Medicare supplement plans provide the basics with additional benefits, which affect the monthly costs of the Medicare supplement insurance premium.
Medicare Advantage is referred to as Medicare Part C and is offered by private insurance companies. Medicare participants can enroll in Medicare Advantage taking advantage of several benefits. Medicare participants can select the Medicare Advantage plan provider, choose the type of plan and pick services for vision, dental and prescription drug coverage. Private insurance companies have the option of selecting the Medicare Advantage plan they will offer to qualified Medicare participants. Depending on the insurance company and the Medicare participant’s selection of plans and services the costs of premiums will vary.
Three most chosen Medicare Advantage plans are the Health Maintenance Organization (HMO), Preferred Provider Organizations (PPO), and Private Fee for Services (PFFS). Other Medicare Advantage plans are the Special Needs Plans (SNP), which operates much like a HMO organization, HMO Point of Service and Medical Savings Accounts. SNP plans have specific requirements for Medicare participants, it’s intended to care for chronic medical conditions, institutional care and in some cases the participant may be enrolled in both Medicare and Medicaid programs.