What are the other costs for original Medicare?
Roughly 80% of original Medicare enrollees buy supplemental (or Medigap) insurance policies to protect themselves from oversize out-of-pocket costs if big health issues emerge. Those who don't are typically very poor (Medicaid will cover most of their incremental costs) or the very rich (who can afford to pay any incremental medical costs).
In 1990, Congress passed a law establishing 10 standard Medigap insurance policies (plans A through J).
What is Medicare Advantage?
In 1997, Congress approved a competitor to original Medicare, known first as Medicare+Choice (M+C), then renamed Medicare Advantage in 2003.
Part C plans allowed HMOs and PPOs into the Medicare system. So now Medicare enrollees face a choice: original Medicare (managed directly by the fedeal government), or Medicare Advantage (through a private sector provider).
We will compare these two choices in next blogpost.