Medicare is the federal government program that provides health care coverage if you are 65 or older, under 65 and receive Social Security Disability Insurance (SSDI) for a certain amount of time, or under 65 and have End-Stage Renal Disease (ESRD). Part A covers hospitalization & skilled nursing. Part B covers all other Medicare medical benefits.
These plans contract with the government to provide Medicare benefits. They must provide at least the same set of benefits offered by Original Medicare, but may have different rules, costs, and restrictions. Some plans offer prescription drug coverage and may also offer extra benefits, such as vision or dental services.
Insurance that you buy from a private insurance company to fill in the gaps (sometimes called Medigap plans) in Original Medicare coverage by paying for your Medicare deductibles, coinsurances and copayments.
If you have Original Medicare and want Medicare drug coverage, you need to sign up for a private plan that only offers drug coverage (PDP). All Medicare drug plans have different costs and a different list of drugs that they cover.
Original Medicare Parts A & B
Plus a Medicare Supplement Plan
Plus a Medicare Prescription Drug Plan - Part D
Replace all of Option 1 with a Medicare Advantage Plan - Part C
