What You Need to Know About Medicare

Remember that this is private coverage, and after the contract period expires you can have your benefits discontinued and need to seek a different provider or return to original Medicare.

Medigap

You can get additional hospitalization and medical coverage by purchasing a private insurance policy called Medicare Supplement Insurance or Medigap. Some beneficiaries have retiree health benefits from a former employer that helps to fill Medicare's gaps in Part A and Part B coverage.

To make comparing policies from one insurer to another easier, Congress standardized and simplified Medigap plans so that there were just 10 to choose from. All the plans are known by letters, with Plan A being the most basic and Plan J being the most comprehensive. Wisconsin, Massachusetts and Minnesota offer different plans, but they follow the same principle.

In 2006, two new plans, K and L, were introduced. These plans are intended to have lower monthly premiums with higher deductibles, and can be attractive to seniors unwilling or unable to pay higher monthly premiums or to those who have expectations of low health expenses and are prepared to pay a higher deductible with a cap to costs.

Prescription Plans

Medicare now offers insurance coverage to help you pay for prescription drugs. Medicare prescription drug coverage, commonly referred to as Medicare Part D, works differently from other Medicare coverage.

Medicare prescription drug coverage is available only from private companies that have been approved by Medicare. All private companies that are approved to offer Medicare's prescription drug benefit must offer a minimum level, known as the Standard Medicare Drug Benefit.