Understanding Your Medicare Options

Medicare provides health and prescription drug coverage for over 56 million adults in the U.S. Each year, Medicare enrollees have the opportunity to review their individual needs and plan options to determine their coverage for the upcoming year. The open enrollment period runs Oct. 15, 2019, through Dec. 7, 2019, so now is the time to review your Medicare coverage and the available Medicare supplemental coverage options.

What is Original Medicare?

Medicare is the federal health insurance program for people 65 or older, people under age 65 with certain disabilities and people of all ages with end-stage renal disease (a permanent kidney failure requiring dialysis or a kidney transplant). Original Medicare has two parts: Medicare Part A and Part B. Medicare Part A (hospital insurance) helps cover inpatient hospital care, hospice care, some home health care and up to 100 days in a skilled nursing facility when certain conditions are met. Medicare Part B (medical insurance) covers doctor visits and services, surgery, outpatient care, medical supplies and equipment, mental health services, physical and occupation therapy, and preventive services, including physical exams, screenings and flu shots.

Additional Coverage Options

Original Medicare has deductibles, copayments and coinsurance that can quickly add up. That’s why many people enroll in private health plans to help cover the costs that Medicare does not. There are three main types of plans.

Medigap Plans (Medicare Supplement Insurance)

This optional private insurance policy is licensed by the state of Minnesota and pays health care costs or gaps that are not covered by Medicare, like Medicare coinsurance, copayments and deductibles.

Medicare Advantage Plans (Medicare Part C)

Medicare Advantage Plan is a type of Medicare health plan offered by private companies that contract with Medicare to provide your original Medicare benefits. Medicare Advantage Plans cover Medicare Part A and Part B benefits and includes prescription drug coverage and other benefits.

Medicare Part D (prescription drug coverage)

This optional program provides coverage for generic and brand name prescription drugs. Medicare Part D Plans can be used to add prescription drug coverage to a Medigap plan. These plans vary based on the drug type, prescription costs and pharmaceutical network.

AAA Can Help

The AAA Minneapolis Insurance Agency understands Medicare and Medicare insurance plans and hosts Medicare 101 seminars every month. If you have questions about Medicare or would like to attend an upcoming seminar, contact Guy Milbert at 952-927-2752 or gmilbert@aaaminneapolis.com. Guy is the AAA long-term care and health insurance planning specialist and has worked at AAA since 1990.