In 2003, additional legislation was signed to create Medicare Advantage plans that replace and cover all of the benefits in Original Medicare Part A and Part B. Medicare Advantage Plans (Part C) provide all of your Part A (hospital) and Part B (medical) coverage and must cover all medically necessary services.
You must be enrolled in Medicare Part A and B to join a Medicare Advantage Plan. These plans are part of the government’s Medicare program, but they are offered and managed through approved private insurers, like Cigna, and may offer plan extras not found in Original Medicare.
There are various kinds of Medicare Advantage Plans available, many of which you may find familiar, such as HMO, PPO, and Private Fee-for-Service plans.
Confused by Medicare terms?
Part C
Medicare Advantage Plan
Part A
Hospital
+
Part B
Medical
+
Part D
Prescription
- Combines Original Medicare, Part A and Part B, in 1 plan
- Often also includes Medicare Part D prescription drug coverage
- May come with additional programs and services not offered by Original Medicare
These plans are part of the government's Medicare program, but are offered and managed through private insurers, like Cigna. Medicare Advantage Plans may include plan extras not found in Original Medicare. You must be enrolled in Medicare Part A and Part B to join.
Advantages of Medicare Advantage Plans (Part C)
- You can get all of your coverage bundled together in 1 convenient plan.
- Your costs may be lower than the Original Medicare Plan.
- You may get extra benefits offered by the plan such as coverage for vision, hearing, dental, and wellness programs, as well as special discounts on health-related items.
- Prescription drug coverage may be included as part of the plan.
- You do not need to buy additional insurance to supplement Medicare Part A and Part B (a Medicare Supplement policy).
- You still have all the rights and protections offered through the Medicare program.
- You may qualify for help paying for premiums (subsidies).
Costs of Medicare Advantage Plans (Part C)
- You will continue to pay the Original Medicare Part B monthly premium and you may also have to pay the Medicare Advantage plan’s premium.
- Like Original Medicare (Part A and Part B), you will usually have to pay some out-of-pocket costs (such as copayments or coinsurance) for certain services.
Note: These amounts are generally lower than in the Original Medicare plans where you typically pay a percent (such as 20%) of the cost of the services you use.