What is Medicare Part C?
What generally is referred to as ‘original Medicare’ are the Parts A and B. However, these plans do not cover everything. For this reason Congress added Medicare Part C. Part C is alternatively known as Medicare Advantage plans, or MAPs.
Medicare part A and B are administered by the the U.S. government. Medicare Advantage plans on the other hand are offered by private insurance companies. Not every insurance company can provide part C coverage; private insurance companies offering this kind of additional insurance must be approved by Medicare.
Medicare Part C Coverage
By law, Part C plans must provide coverage for the same services provided under the original Medicare plan. This includes Hospital Insurance (Part A) and Medical Insurance (Part B). The difference is that Medicare Advantage can offer extra coverage. Each insurer is not only free to add benefits, but also set its own premiums, deductibles or co-payments. In fact, most advantage plans offer extra coverage which may include vision, hearing and or dental plans as well as health and wellness related programs and services. Many also include Medicare Part D which covers your prescription coverage. There are even plans that offer additional benefits but do not charge you anything over your Part B premium – they are called ‘zero premium plans’.
MA plans are different than supplemental coverage, otherwise known as Medigap. While Medigap also provides additional coverage to the original Medicare plan, the difference between the two is that Medigap Insurance pays after Medicare pays, but Part C pays instead of Medicare. Therefore, Medicare Part C can be viewed as a replacement policy – you basically ‘trade’ your original Medicare for coverage provided by a Medicare advantage plan provider. Meaning, your Medicare Part A and Part B will be administered by a private insurance company instead of the federal government.
You are not allowed to have both kinds of Medicare add-ons at the same time. If you are enrolled in a Part C plan, you cannot have a Medigap policy, and vice versa. You must cancel one or the other.
Another thing to note is that Hospice care is not typically covered by a Medicare Advantage Plan. Hospice care will always be covered by Medicare, even when you have a Medicare Advantage Plan.
So, basically Medicare Part C is a replacement for Part A and B, which typically provides additional coverage, provided by private insurers, approved and regulated by Medicare. Also, Medicare Advantage plans are not the same as Medigap (Medicare Supplemental Insurance). Supplemental insurance pays after the fact and MA plans pay instead.
Read more about your advantage and supplemental options here.
