Medicare Simplified

When first enrolling in Medicare, there are two options: Original Medicare and Medicare Advantage.
Original Medicare has two core components – Part A and Part B. In addition, there are some non-mandatory, although generally encouraged, options to add on to Part A & B to provide more comprehensive coverage. These optional add-ons are the Part D prescription drug coverage and a Supplemental (Medigap) plan. Such a combination of add- ons is referred to as Original Medicare with a Supplement – or Medigap policy – and a Prescription Drug Plan. The purpose of the add-ons is to eliminate the financial risk exposures resulting from those service costs that Parts A & B do not cover.

Medicare Advantage is a private plan that bundles the benefits of Original Medicare together into one plan, eliminating the need to purchase additional supplements or additional prescription drug coverage separately. Medicare Advantage plans will often provide additional services, such as dental, vision, and hearing, that Original Medicare does not include.