Medicare (Original Medicare and Medicare Advantage)

Medicare is the federal health insurance program. Original Medicare = Part A (hospital insurance) + Part B (medical insurance) and lets beneficiaries use any doctor or hospital that takes Medicare, anywhere in the U.S. (all 50 states, DC, Puerto Rico, U.S. Virgin Islands, Guam, Northern Mariana Islands, American Samoa). Original Medicare beneficiaries can add a separate Part D drug plan and/or buy a Medigap (Medicare Supplement) policy to help cover the 20% coinsurance and other out-of-pocket costs. Medicare Advantage (Part C) is an alternative offered by private health plans that Medicare approves; these bundled plans include Parts A and B and usually Part D, often with extra benefits (vision, hearing, dental), but typically use a network and require prior authorization for some services. They have an annual out-of-pocket maximum, so Medigap is not needed.