The Original Medicare Plan – This is a fee-for-service plan that covers many health care services and certain drugs. You can go to any doctor or hospital that accepts Medicare. When you get your health care, you use your red, white, and blue Medicare card.
The Original Medicare Plan pays for many health care services and supplies, but it doesn’t pay all of your health care costs. There are costs that you must pay, like coinsurance, copayments, and deductibles. These costs are called “gaps” in Medicare coverage. You might want to consider buying a Medigap policy to cover these gaps in Medicare coverage. You can also add prescription drug coverage by joining a Medicare Prescription Drug Plan.
For more information on the Original Medicare Plan, visit the Original Medicare Plan section of this website.
Medicare Advantage Plans – Available in many areas. If you have one of these plans, you don’t need a Medigap policy. These plans include:
- Health Maintenance Organizations (HMO),
- Preferred Provider Organizations (PPO)
- Private Fee-for-Service Plans
- Medicare Special Needs Plans
- Medicare Medical Savings Account Plans (MSA)
Click here for more information on Medicare Advantage Plans.
That intent did not last in the face of special interest lobbying as the payment threshold for Medicare Advantage plans rose compared to traditional Medicare. Some more background from the Kaiser Family Foundation Medicare Fact Sheet, May 2009 (http://www.kff.org/medicare/2052.cfm):
For many years, payments to Medicare HMOs were generally set on a county-by-county basis at 95% of Medicare FFS costs in each county because HMOs were thought to be able to provide care more efficiently than FFS… Medicare Advantage plans are currently paid more, on average, than FFS costs in their area. According to MedPAC, payments to Medicare Advantage plans per enrollee in 2009 will average 114% of FFS costs for the counties where Medicare Advantage enrollees reside.
Again the original intent was lost, so now we are faced with disparate Medicare plans with only a subset of seniors receiving enhanced benefits (due to greater government expenditures – not due to the efficiency of the private plans). To try and preserve these enhanced plans makes no sense. If we want to make the decision to spend the 114% of current traditional plan expenditures on all seniors, so be it. However, to continue to spend money desperately needed elsewhere just because certain industry lobbyists have perpetuated these plans (with ever increasing expenditures) makes no sense. Just because some seniors by the luck of the draw have ended up in these rich plans is not a reason to preserve them and is not equitable.
Posts
