Medicare and Medicaid: What Are the Differences by Deborah Sexton

Medicare and Medicaid: What Are the Differences

Medicare Part C (Medicare Advantage Plans) are offered by a private company that contracts with Medicare to provide Part A and Part B benefits. Medicare Advantage Plans include the following:

 Health Maintenance Organizations,  Preferred Provider Organizations,  Private Fee-for-Service Plans,  Special Needs Plans, and  Medicare Medical Savings Account Plans

Coverage is provided by the private insurance companies that are approved by Medicare. You are required with most plans to use doctors, hospitals and other providers who are within the plan. You are required to pay monthly premiums in addition to any Part B premium that you pay, along with deductibles and copays.

Medicare Part D (prescription drug coverage) adds prescription drug coverage to Medicare Parts A and B, some Medicare Cost Plans, some Medicare Private-Fee-for-Service Plans and Medicare Medical Savings Account Plans. If you want this coverage, you should join a Medicare Prescription Drug Plan and pay the monthly premium. These plans are run by Medicare-approved companies. Some Medicare Advantage Plans offer prescription drug coverage. If they do not, you can join a Medicare Prescription Drug Plan.

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