Medicare

Medicare is a federal health insurance program in which those who are 65 or older or individuals with certain disabilities are invited to take advantage of. However, Medicare does not cover all health care expenses, meaning you may need to look into additional policies in order to cover these out-of-pocket costs. There are two main options available to cover Medicare coverage gaps: Medicare Advantage and Medicare Supplement plans.

Original Medicare – Includes Part A and Part B. You can use any doctor or hospital that takes Medicare, anywhere in the U.S.

• If you want drug coverage, you can join a separate Medicare Prescription Drug Plan (Part D) .
• To help pay your out-of-pocket costs in Original Medicare (like your 20% coinsurance), you can also shop for and buy supplemental coverage like a Medicare Supplement Insurance (Medigap) policy.

If you don't get Part D or a Medigap policy when you're first eligible, you may have to pay more to get this coverage later. For Part D, this could mean a lifetime premium penalty.

Medicare Advantage – An "all in one" alternative to Original Medicare. These "bundled" plans include Part A, Part B, and usually Part D. Most plans offer extra benefits that Original Medicare doesn't cover – like vision, hearing, dental, and more.

• Plans may have lower out-of-pocket costs than Original Medicare.
• In most cases, you'll need to use doctors who are in the plan's network.

Information provided by Medicare.gov