Original Medicare, or Part A, includes hospital insurance. Part B is for doctors, outpatient expenses and medical equipment. Medicare Advantage plans include both Parts A and B.

Medicare Advantage plans fall under Part C, whereas Medicare prescription drug plans are classified as Part D.

The free annual guide Medicare & You 2016 will help to clear up the difference kinds of coverage for each part. For people with private insurance, the Annual Notice of Change (ANOC) and Evidence of Coverage (EOC) documents will also provide important information. Being familiar with the documents is an instrumental part of selecting a plan.

Making A Decision

The plans are split into a few basic choices. The Original Medicare beneficiaries may also purchase a Medigap policy. These supplemental policies fill the holes in the Original Medicare plans.

Because Original Medicare only covers 80 percent health expenses, patients will have to pay for the rest out of pocket. This can be very expensive for patients with serious conditions that require hospitalization, surgery or other costly treatments.

During open enrollment, beneficiaries can add Medigap “letter” plans. The coverage for each letter plan is identical, meaning that all A plans are the same, all B plans, and so on. The only difference is the premiums.

If you’ve already passed the beginning eligibility period for Medicare, the plans may be pricier because guaranteed issue rights to Medigap have expired. Private insurers no longer have to sell beneficiaries a plan regardless of health status or age. It’s possible that beneficiaries could be forced to pay higher premiums or deal with coverage limitations based on pre-existing medical conditions.

Original Medicare beneficiaries may also purchase a Medicare Advantage plan or change their current Advantage plan. For this specific plan, patients cannot be forced to pay higher premiums or face rejections because of current medical problems.

The only catch is that if you choose to switch to Medigap, you can’t keep a Medicare Advantage plan. The two plans can never overlap, so patients should be sure about making the switch because they will lose their guaranteed issue rights.

While 70 percent of patients have Original Medicare plans, and 30 percent are covered by Medicare Advantage, all beneficiaries can alter their Part D prescription plan during open enrollment.

Take the time to understand the different options during Medicare enrollment to receive better coverage for a cheaper price.