Understanding the Difference between Medicare Parts & Medicare Plans

Posted on 06/17/2013 When jumping into the Medicare landscape, seniors often confuse the “Parts” of Medicare with the various “Plans” offered as Medicare Supplement. Despite the similarities between the words Part and Plan, they have two totally different meanings. It is important to know the difference between your parts and your plans! There are four Parts of Medicare- Part A, Part B, Part C and Part D. Medicare Parts & B constitute original Medicare.

Part A: Covers hospital care, skilled nursing facility care, hospice and some home health services.
Part B: Covers doctors’ services and other outpatient care. Additionally, it covers certain physical and occupational therapist services, and some home health care.
Part C (Medicare Advantage): These plans are sold through private insurance companies, combining Parts A, B, and sometimes D as well.
Part D: Offers prescription drug coverage through the purchase of a stand-alone Prescription Drug Plan or combined with Part C coverage through a Medicare Advantage Prescription Drug (MAPD) plan. Each Part D Plan has its own list of covered drugs (called a formulary).

On the other hand, there are Medicare Supplement “Plans.” There are ten different Medicare Supplement (also know as Medigap) Plans- Plan A, B, C, D, F, G, K, L, M and N. It is important to know that when talking about Part C or Plan C, each phrase means two totally different things. If someone is speaking about Part C, they are referring to Medicare Advantage coverage, such as Keystone 65, offered through Independence Blue Cross. If someone is referring to Plan C, they are referring to a Medigap Plan. No one is required to purchase a Medigap Plan. However, since Original Medicare was never designed to cover all health costs, seniors often enroll in these plans for the additional coverage. Medigap Plans fill the “gaps” in coverage that exists in Original Medicare. We understand that all of this can be very confusing. MyMedicareAdvisor is here to help. Just call (215) 658-1776