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How Do I Know What Medicare Plan To Choose

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What Are Your Total Part D Costs

How To Choose A Medicare Plan | 5 Things You Should Know Before Choosing A Medigap Plan

Premium costs for Part D vary by plan. As with Medicare Part B, high earners will pay an extra charge on top of their premium. You may also pay a late enrollment penalty if you delay joining Part D insurance when youre first eligible and you dont already have prescription drug coverage.

Here is more information on how Part D late enrollment penalties are calculated.

When comparing Part D plans, look beyond premiums and investigate what youll pay in total costs among the plans that include the drugs you need in their formularies. Heres what to check.

  • The maximum Part D deductible us $445 in 2021 for all plans, but plans can choose to have a lower deductible.
  • Copayments and coinsurance. Part D and Medicare Advantage plans with prescription drug coverage almost always charge a copayment or coinsurance for each of the medicines you purchase. Copays are a set amount you pay for each prescription filled, say $10 or $20. Coinsurance is the percentage of the drug cost that you pay, such as 10% or 20%.
  • Cost structure. Part D coverage uses a tiered cost-sharing structure. This means you will pay a different price for different categories of drugs. In general, youll pay more in copays or coinsurance for brand name drugs and less for generics.

Things You Need To Know About Medicare Enrollment

Find out how to apply and get expert tips to make the process simpler.

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As you approach the age of 65, you may be wondering when and how you should enroll in Medicare. For many people, the thought of navigating this federal government healthcare system can feel overwhelming.

If you aren’t quite sure where to start when enrolling in Medicare, here is a step-by-step guide through the process to make sure you’re well-prepared for this milestone moment in your life and wellness.

What Are My Costs

Original Medicare
  • For Part B-covered services, you usually pay 20% of the Medicare-approved amount after you meet your deductible. This is called your coinsurance.
  • You pay a premium for Part B. If you choose to join a Medicare drug plan, youll pay a separate premium for your Medicare drug coverage .
  • There’s no yearly limit on what you pay out of pocket, unless you have supplemental coveragelike Medicare Supplement Insurance .
Medicare Advantage
  • Out-of-pocket costs varyplans may have different out-of-pocket costs for certain services.
  • You pay the monthly Part B premium and may also have to pay the plan’s premium. Plans may have a $0 premium or may help pay all or part of your Part B premium. Most plans include Medicare drug coverage .
  • Plans have a yearly limit on what you pay out of pocket for services Medicare Part A and Part B covers. Once you reach your plans limit, youll pay nothing for services Part A and Part B covers for the rest of the year.

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Once You Find The Best Medicare Advantage Plan For You Know When To Sign Up

Here are a couple of quick things to know about Medicare Advantage plans.

  • You need to be enrolled in Medicare Part A and Part B.
  • You must live within the plans service area.
  • You continue paying your Part B monthly premium, along with the plan premium .
  • You have limited windows of time to sign up. Learn about the Medicare Advantage enrollment periods.

Would you like to learn more about Medicare Advantage plans? You can get personalized assistance from a licensed eHealth insurance agent by contacting us today.

*Out-of-network/non-contracted providers are under no obligation to treat Preferred Provider Organization plan members, except in emergency situations. For a decision about whether the plan will cover an out-of-network service, you or your provider are encouraged to ask for a pre-service organization determination before you receive the service. Please call the plans customer service number or see your Evidence of Coverage for more information, including the cost sharing that applies to out-of-network services.

**A Private Fee-for-Service plan is not Medicare supplement insurance. Providers who do not contract with the plan are not required to see you except in an emergency.

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What Is A Medicare Advantage Plan

Benefits of choosing a Medicare Advantage plan

Medicare Advantage , also sometimes referred to as Medicare Part C, provides patients with an alternative to traditional, fee-for-service Medicare. Patients can choose from a variety of MA plans offered by private insurance companies. In return for a monthly per capita payment from the Centers for Medicare and Medicaid Services, MA plans must provide hospital and professional services just as traditional Medicare does. Many MA plans also cover prescription drugs as well as supplemental benefits such as dental and vision care.

According to the Kaiser Family Foundation, MA plans have been surging in popularity over the past 10 years and as of 2020, they represent almost 40% of all Medicare patients. Assuming this growth continues, psychologists should anticipate that some patients who initially signed up for traditional Medicare may switch, or already have switched, to MA plans.

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Types Of Medicare Plans

There are actually a variety of Medicare plans. Most people think that Medicare is just one health insurance program that encompasses all of a persons medical needs. Actually, Medicare breaks down into multiple parts or plans.Original Medicare includes

  • Part A Hospital Insurance covers in-patient hospital care, skilled nursing care, home health care and hospice care.
  • Part B Doctors visits, blood tests, x-rays and outpatient care.

Medicare Advantage

  • Part C Medicare Part C plans cover Medicare Part A and Part B, but they also include extras like prescription drug coverage, vision and dental. These plans are offered privately through major health insurance companies. They typically have a low cost or may cost nothing. You still have to pay Part B premium if you choose Medicare Part C. You have one insurance card and pay one insurance company.

Medicare Part D

  • Part D Prescription drug coverage covers generic drugs for Original Medicare, but with Medicare Advantage, you may be able to get free generic drugs and discounted premium drugs. Prescription coverage is offered separately for those who have Medicare Part A and B, but its typically included with Medicare Part C.


  • Medigap This is supplemental coverage to take care of services that Original Medicare recipients dont have. You cannot get Medigap if you have Medicare Advantage.

Special Needs Plans

When Should You Buy A Medigap Policy

All states allow for guaranteed issue, which means that you have the right to buy a Medigap policy for six months starting the first day of the month you are at least 65 and enrolled in Medicare Part B.

During this enrollment period, an insurance company cannot turn you down for a Medigap policy or charge you more for a preexisting health condition.14

If you dont buy a Medigap policy during that period, youre only entitled to a guaranteed issue Medigap policy in certain situations:

  • Your Medicare Advantage plan closes.
  • You move out of the area.
  • Your retiree plan shuts down.
  • You joined a Medicare Advantage plan at age 65 but decided to switch back to Original Medicare within a year.
  • Your Medigap policy closes.15

Theres some homework to do to figure out the right choice, but it will be well worth it. The best Medigap policy can ensure you have the coverage you want at a price you can afford and, most important, help you manage healthcare costs that Medicare wont cover.

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Medicare Plus Medigap Supplemental Insurance Policies

About 58% of the 62 million older adults and people with disabilities who receive Medicare benefits choose Original Medicare, Parts A and B, which cover hospitals, doctors, and medical procedures. About 81% of these beneficiaries supplement their insurance with Medigap , Medicaid, or employer-sponsored insurance, and 48 million also pay for a stand-alone Medicare Part D prescription drug policy.

Medicare Supplement Insurance, or Medigap plans, are not connected with or endorsed by the U.S. government or the federal Medicare program.

While this may be the more expensive option, it has a few advantages. Both Medicare and Medigap insurance plans cover you for any hospital or doctor in the U.S. that accepts Medicare, and the great majority do. There is no need for prior authorization or a referral from a primary care doctor. Coverage includes the entire U.S., which may be important for anyone who travels frequently or spends part of the year in a different locale. This option is also attractive to those who have particular physicians and hospitals they want to use.

How To Know If You Need A Medicare Advantage Plan

How to choose your Medicare plan

February 15, 2022 by Kari Mellone

When youre newly eligible for Medicare, the options can be overwhelming. Whats the difference between Original Medicare, Medicare Advantage, Part D and Medigap? How do I know if I need a Medicare Advantage Plan, or if another plan is the right choice for me? At Twin City Underwriters, were here to help you answer those questions and to find the right Medicare plan for your unique needs.

Here are a few things to consider when determining whether you need a Medicare Advantage Plan.

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Decide How Much Health Care Coverage You Want

If you’re only looking for basic, no-frills coverage, Original Medicare takes care of that. It’s the combination of Medicare Part A and Part B . To get help paying for prescription medications, you’ll also need to enroll in a stand-alone Part D plan.

Medicare Advantage plans, also known as Medicare Part C, combine Parts A and B, and often Part D . These plans may include vision, hearing, and dental benefits, and health and wellness programs that aren’t offered by Original Medicare. Medicare Advantage plans are an alternative to Original Medicare, not a supplement to it.

Even if you don’t use many health care services or prescription medications at the moment, keep in mind that even the healthiest person can experience an unexpected illness or accident, and costs can add up fast. Prepare for the unknown as you choose a plan, just in case.

Do I Want The Flexibility To See Any Doctor

Finding the right doctor is an important part of your health care journey. So if youre considering a Medicare Advantage plan, you should know that some require you to see primary doctors and specialists in their network. Others will allow you to choose any doctor, but at a higher cost. Youll need to weigh whether sticking with your current doctors, even if they arent in the network, is more important than the benefits you may get from an in-network provider. Often the network allows for better coordination of care between doctors, which can help you better manage your health care.

In contrast, Original Medicare is a national plan that doesnt restrict which doctors you can see, as long as they accept Medicare. For instance, if you live six months of the year in New Jersey, and the other six in Florida, youll still be able to see doctors in both places. Since those doctors may not all be part of the same network, it might be harder for them to share information about your care, leaving you to do more of the legwork. And generally, Original Medicare doesnt limit how much you pay for covered medical care each year. Learn more about how a Medicare Supplement can help you with additional expenses.

Heres what you need to know:

Tip: If you travel frequently within the U.S. or plan to spend time away from your primary residence, check your plans network. Be sure youll have access to doctors that participate in your Medicare Advantage plan in the location youll be visiting.

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How Do I Know If Part D Is Right For Me

Medicare is divided up into four different parts. This allows beneficiaries to select the parts that align with their needs. The first two parts of Medicare are what makes up Original Medicare. The third part of Medicare, or Part C, allows beneficiaries to build their coverage. The last part of Medicare, Part D, provides coverage for prescription drugs.

When Can I Enroll In A Medicare Plan Outside Of The Annual Enrollment Period

How to Choose a Medicare Drug Plan

Outside of AEP, there are a few other opportunities to enroll or disenroll in a Medicare plan.

  • Initial Enrollment Period : This is a window of time that starts three months before your 65th birthday and continues for three months after your birthday.
  • Special Enrollment Period : Available when life changes or special circumstances occur outside of AEP that result in needing to change your current health plan. Learn more about SEP.
  • Open Enrollment Period : Medicare eligible persons can make like plan changes from January 1 – March 31. During this 3-month window, you can add or drop Part D coverage, or disenroll from a plan. Learn more about disenrolling.

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Two: Determine The Best Drug Coverage For Your Needs

If you choose Original Medicare, you also have the option of joining a Part D prescription drug plan. Youll pay an extra premium for the plan and youll need to compare plans available in your area for both coverage and cost.

If you decide on Medicare Advantage, its likely your Part D prescription drug coverage is included in the plans you are considering. If it isnt, you can purchase Part D coverage separately.

Whether you are evaluating stand-alone Part D plans or Part D coverage included in Medicare Advantage plans, youll need to carefully compare plans you are considering, taking a close look at the following.

Questions To Consider When Choosing A Medicare Advantage Plan

Before enrolling in an MA plan such as a Health Maintenance Organization , find out as much information as you can about the plan. If possible, talk to people who are enrolled in the plan and ask your doctor about it.

Be sure to find out the answers to these questions:


  • Are there specific physicians you want to see? If so, are they in the plans network of providers ?
  • Do the physicians you want to see participate in a different MA plan than the one youre considering? If so, which one? How much will your plan charge if you want to see physicians outside the plans network?
  • If youre considering a Private Fee-for-Service plan, will your physicians accept that plans payment terms?

Part D Prescription Drug Benefits

  • Does the MA plan include Part D drug benefits? Note: Several MA plans such as certain PFFS or HMO plans, do not offer Medicare Part D benefits.
  • If the plan includes Part D benefits, does it cover the prescription drugs you are currently taking? Check the plans formulary to find out what is available to you at what cost.


  • Do you already have a Medigap policy? If so, you wont need to keep it if you enroll in an MA plan. A Medigap plan only pays benefits while you are in Original fee-for-service Medicare.

Take your time. Do not feel pressured to sign on with any plan this is your choice and you should take the time to get all the facts. However, you must make a decision before the end of any enrollment period that may apply.

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How Do I Know If My Patient Is Enrolled In An Ma Plan

Ask to see documentation of their enrollment in Medicare. MA plan patients will have two cards from Medicare. The first is the standard red, white, and blue Medicare card that shows the date they became eligible for Parts A and B. The second is a plan-specific MA card. The MA card has contact information, including phone numbers, for providers with questions such as whether their services will be covered.

Tip : Drug Formularies Are Your Friends

Humana: How to choose a Medicare Plan that’s right for you

Medicare plans have a list of covered drugs called a formulary. Each plan creates its own formulary and can change it from year to year. Check each formulary when shopping and reject any plan that doesnt list the prescription drugs you take.

Once you find a few plans that offer the medications you need, then compare costs and other factors for the remaining plans youre interested in. Most plans have pharmacy networks that offer plan pricing to members, so youll want to find one that includes the pharmacy you like to use as well.

You can get prescription drug coverage through a standalone Medicare Part D plan or as part of a Medicare Advantage plan.

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Check The Plan’s Quality Rating

The Centers for Medicare & Medicaid Services evaluates the quality of Medicare Advantage plans every year and their ratings give you an apples-to-apples way to compare plans. A 5-star rating indicates the highest rated plan, and a 4-star rating means an above-average plan.

You’ll find the most up-to-date star ratings on the Medicare Plan Finder tool. The 5-star plans have a gold star near their names. Or you can call 1-800-MEDICARE, , 24 hours a day, 7 days a week.

For more details about what the different types of Medicare plans do and don’t include, check out our Understanding Medicare page.

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