Generally, the different parts of Medicare help cover specific services. Most beneficiaries choose to receive their Parts A and B benefits through Original Medicare, the traditional fee-for-service program offered directly through the federal government. It is sometimes called Traditional or Fee-for-Service (FFS) Medicare. Under this setup, the government pays directly for the health care services you receive. You can see any doctor and hospital that takes Medicare (and most do) anywhere in the country.
In Original Medicare:
- You go directly to the doctor or hospital when you need care. You do not need to get prior permission/authorization to go see your primary care doctor.
- You are responsible for a monthly premium for Part B. Some also pay a premium for Part A.
- You typically pay a coinsurance for each service you receive.
- There are limits on the amounts that doctors and hospitals can charge for your care.
- If you want prescription drug coverage, in most cases you will need to actively choose and join a stand-alone Medicare private drug plan (PDP).
Note: There are a number of government programs that may help reduce your health care and prescription drug costs if you meet the eligibility requirements.
Unless you choose otherwise, you will have Original Medicare. You can decide to get your benefits from an Advantage Plan, also called Part C or Medicare private health plan. Remember, you still have Medicare if you enroll in an Advantage Plan. This means that you must still pay your monthly Part B premium (and your Part A premium, if you have one). Each Advantage Plan must provide all Part A and Part B services covered by Original Medicare. They can do so with different rules, costs, and restrictions that can affect how and when you receive care.
It is important to understand your coverage choices and to pick your coverage carefully. How you choose to get your benefits and who you get them from can affect your out-of-pocket costs and where you can get your care. Planning for these expenses can be part of your legacy planning. For instance, in Original Medicare, you are covered to go to nearly all doctors and hospitals in the country. On the other hand, Advantage Plans typically have network restrictions. That means that you will likely be more limited in your choice of doctors and hospitals. However, Medicare Advantage Plans can also provide additional benefits that Original Medicare does not cover, such as routine vision or dental care.