Choosing a Medicare Plan
Confused by the Medicare coverage options? Find out how to choose a Medicare plan, what the different plans are, and steps to follow when deciding which plan is right for you.
How do you choose a Medicare plan?
To choose a Medicare plan, you first need to understand a bit about Medicare. What types of plans are there? Part A, Part B, Part C, Part D—what do they all mean and how do they work together? And what about Medicare Supplement Insurance (also called Medigap)—is that a type of Medicare coverage, too?
What are the different types of Medicare plans?
There are 3 different types of Medicare coverage:
- Part A and Part B, also called Original Medicare: Part A covers hospital care and Part B covers medical care. Part A and B cover the costs for many inpatient and outpatient medical services, as well as hospice care, some skilled nursing facility care, home health care, and durable medical equipment. Your out-of-pocket expenses can include annual deductibles, coinsurance, and copays.
- Part A and B does not include dental, vision, or prescription coverage.
- Medicare Advantage: This is also known as Part C. Medicare Advantage plans are offered through private insurers like Cigna Healthcare®.¹ They bundle all of Part A and B (hospital and medical care), and usually include Part D prescription drug coverage, too. Many of these plans include dental and vision care.
- Medicare Supplement Insurance Policies, or Medigap: These plans are also offered through private insurers, like Cigna Healthcare. Medicare Supplement insurance plans are just that — they supplement or offer additional coverage to help pay some of the costs that Original Medicare doesn’t pay. Medicare Supplement plans come in many different options, from those that cover basic costs to those that offer more extensive coverage for deductibles, as well as copays and coinsurance.
Medicare Supplement plans only work with Original Medicare or standalone Part D Prescription Drug plans. They do not work with Medicare Advantage plans.
Need Medicare coverage?
Cigna Healthcare® has Medicare Advantage, Medicare Supplement, and Medicare Prescription Drug Plans.
What factors should you consider when choosing a Medicare plan?
Choosing a Medicare plan means taking a few moments to consider what would best fit your needs and lifestyle. You may want to consider the following factors when comparing Medicare plans:
- What are your health care needs?
- Do you see your primary care provider once a year for your annual checkup? Do you also need to see specialists for additional care?
- Do you expect to be hospitalized for a surgical procedure or need outpatient surgery?
- Do you take any prescription medications? If so, do you take specialty medications, things like insulin or other injectables, or do you take generic medications?
- Do you have a chronic condition that puts you at risk for needing more care?
- Do you have a chronic condition or disability for which you are already receiving Medicaid or disability benefits?
- Do you need dental care or vision care?
- Do you want coverage to include access to behavioral health providers such as therapists and counselors?
- Are you okay seeing a doctor in a network or do you want to have the flexibility to see any doctor who accepts Medicare?
- If you travel, do you want coverage wherever you go?
Having the answers to these questions, and others like it, may help guide you when deciding which type of Medicare coverage is right for you.
3 Steps to Choosing a Medicare Plan
This graphic shows the steps you might take when choosing Medicare coverage that’s right for you. It’s a great place to start if you want to compare Medicare plans or need a quick review of Medicare and all its parts.
You’ll see the main features of each Medicare coverage option side-by-side to help you understand how the different parts of Medicare work with each other.
Confused by Medicare terms?
Decide if you want Original Medicare OR Medicare Advantage
Original Medicare
(Part A and Part B)
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You can enroll in Medicare Part A once you turn 65. If you’re already collecting Social Security disability benefits, you’ll be automatically enrolled in Part A. |
Medicare pays 80 percent of approved charges and you pay about 20 percent. Part B is optional because you have to pay a monthly premium and meet a deductible before Medicare will pay benefits. |
Medicare Advantage
(Part C)
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- Combines Original Medicare, Part A and Part B, into 1 plan
- Often includes Medicare Part D prescription drug coverage
- May come with extra programs and services not offered by Original Medicare
These plans are part of the government’s Medicare program, but are offered and managed through private insurers, like Cigna Healthcare, and may offer plan extras not found in Original Medicare. You must be enrolled in Medicare Part A and Part B to join.
If you choose Original Medicare, decide if you need to add supplemental coverage
Skip this step, if you choose Medicare Advantage—
Medicare Supplement doesn’t work with Medicare Advantage Plans (Part C).
Medicare Supplement Insurance
- Helps pay some health care costs (copays, coinsurance, and deductibles) that Original Medicare doesn’t cover
- Works with Original Medicare (Part A and Part B) and Medicare Part D Prescription Drug Plans, but not Medicare Advantage Plans (Part C)
- Offers nationwide coverage without network restrictions²
A Medicare Supplement policy (also known as Medigap) is private health insurance that adds on to Original Medicare. It helps pay about 20 percent of the Medicare expenses that Original Medicare doesn’t cover, after the Part B deductible has been met. It’s important to note that core Medicare Supplement Plan benefits are the same no matter which insurer you choose (for example, Plan G with Company A is exactly the same as Plan G with Company B).
Decide if you need to add prescription drug coverage to either Original Medicare or Medicare Advantage
Part D: Prescription Drug Coverage
- Helps lower prescription drug costs
- All Part D plans must offer at least a standard level of coverage set by Medicare
- Some Medicare Advantage Plans come with built-in prescription drug coverage
Part D plans are part of the government’s Medicare program, but they’re offered and managed through approved private insurers, like Cigna Healthcare. Enrollment in a separate Part D plan is not automatic. You need to select and enroll in a plan.
Find the right plan for you
Explore your options so you can enroll in the Medicare plan
you deserve.
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