Coverage types test yourself transcript

What's the difference between Medicare Advantage and Medigap?

Choose the best answer:

  1. Medicare Advantage plans can include drug coverage, Medigap plans don't
  2. Medicare Advantage is just an advertising name, Medigap is the official Medicare term
  3. Medicare Advantage plans are more expensive and more comprehensive than Medigap plans

Answers:

  1. Medicare Advantage plans can include drug coverage, Medigap plans don't: True. Medicare Advantage plans can provide all-in-one coverage if you choose a Medicare Advantage with prescription drug (MAPD) plan. Medigap plans aren't Medicare at all, so they never include Part D prescription drug coverage.
  2. Medicare Advantage is just an advertising name, Medigap is the official Medicare term: Actually, they're two different types of plans. Medicare Advantage includes your Part A (hospitalization), Part B (medical) and often Part D (prescription drugs). It replaces your Original Medicare (Parts A and B). Medigap works side-by-side with Original Medicare. When Original Medicare covers about 80%, Medigap covers the remaining 20%. Medigap doesn't include Part D prescription drug coverage.
  3. Medicare Advantage plans are more expensive and more comprehensive than Medigap plans: It depends on what plan you choose. You might consider Medicare Advantage with prescription drug (MAPD) plans to be more comprehensive because they include Part D prescription drug coverage. Medigap plans don't. Medicare Advantage plan premiums are based on the county in which you live, while Medigap plan premiums are based on where you live, your age, gender and health, and whether you use tobacco or not.

What's the difference between Original Medicare and Medicare Advantage?

Choose the best answer:

  1. Medicare Advantage plans cost more than Original Medicare
  2. Medicare Advantage plans are a way to get Medicare from a private company instead of the government
  3. Medicare Advantage is a supplemental plan I can add on to my Original Medicare coverage

Answers:

  1. Medicare Advantage plans cost more than Original Medicare: Not necessarily. It depends on which Medicare Advantage plan you choose and what county you live in. Medicare Advantage plan monthly premiums are based on where you live. And remember, many of them include drug coverage.
  2. Medicare Advantage plans are a way to get Medicare from a private company instead of the government: Right. You'll get your Medicare Advantage plan through a private insurance company, but you'll need to keep paying your Part B (medical) premium to the government. You'll also pay a Medicare Advantage premium to the insurance company.
  3. Medicare Advantage is a supplemental plan I can add on to my Original Medicare coverage: No, you're thinking of Medigap plans. Medicare Advantage plans are a way to get your Original Medicare (Parts A and B) through a private insurance company. Medicare Advantage plans often include Medicare Part D prescription drug coverage and are then called MAPD plans.

What's the Medicare Part D coverage gap, often called the "donut hole"?

Choose the best answer:

  1. A list of drugs not covered by my plan
  2. A tasty way to get my drug coverage
  3. A point in my coverage when I have to pay all my drug costs

Answers:

  1. A list of drugs not covered by my plan: No. The coverage gap starts when your total drug costs reach $2,960 and continues until you've paid $4,550. When you're in the gap, you may have to pay all of your drug costs. It's a good idea to make sure the drugs you take are on your plan's approved drug list, otherwise they may not be covered.
  2. A tasty way to get my drug coverage:
    A donut hole may sound delicious, but in this case it's not. The coverage gap, often called the "donut hole," starts when your total drug costs reach $2,850. When you're in the gap, you may have to pay all of your drug costs until you've paid $4,550 - after that, your plan starts paying for your drugs again.
  3. A point in my coverage when I have to pay all my drug costs: Yes. With Part D, once your total drug costs reach $2,850, you may have to pay all of your drug costs until you've paid $4,550 in total drug costs. The federal government is working to gradually eliminate the drug coverage gap by 2020.