A Medicare health plan is a plan offered by a company and contracts with Medicare to provide Part A and Part B benefits. The benefits are to people with Medicare who have enrolled in a plan. The Medicare health care plans include all Medicare Advantage Plans, Medicare Cost Plans, and Pilot Programs. There are also PACE programs which are All-inclusive Care for the Elderly organizations that offer special types of Medicare health plans and provide Part D and other benefits as well as Part A and B benefits.
Medicare Advantage Plans
The Medicare Advantage Plan is a type of plan that is offered by a private company who contracts with Medicare to provide the consumer with all Part A and Part B benefits. These plans also include Health Maintenance Organizations, Private Fee-for –Service Plans, Preferred Provider Organizations, Special Needs Plans, and Medicare Medical Savings Account Plans. A Medicare Advantage plan covers most Medicare services that are not covered under the Original Medicare.
Medicare Medical Savings Account Plans (MSA)
Private Insurance companies work with Medicare to offer you ways to get coverage for helath care. The companies can choose to offer a Medicare MSA Plan which gives you flexibility in choosing health care services and providers. Medicare MSA Plans have 2 parts. These plans combine a high deductible insurance plan with a savings account that you are able to use to pay for your health care.
- High-deductible health plan: Medicare Advantage Plan Part C is the first part of a special high deductible plan. It will only start to cover medical costs once you have met a high yearly deductible which varies by plan.
- Medical Savings Account (MSA): The second part is a special type of savings account. Money is deposited into your account from the Medicare MSA Plan. You can decide to use the money from this savings account to cover your health care costs before you meet your deductible.
If you do join a Medicare MSA plan and need drug coverage, you will also have to join a Medicare Prescription Drug Plan.