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Medicare offers several different types of plans. Although all plan types are not necessarily available in your area, everyone enrolled in Medicare has a choice of at least one other type of plan in addition to Original Medicare.
You may be able to get Medicare coverage through:
If you’re happy with your current Medicare plan, you don’t need to change. But depending on your needs, you may want to find out if another plan might be better for you.
If you want to explore your options, take your time to work through the following steps:
Step 1: Find the Medicare plans in your area
Step 2: Think about what's important to you
Step 3: Compare the costs, benefits, rules for doctor choice and quality of each plan
Step 4: Choose the plan that's best for you
FYI: If you have other health care coverage, such as Medicaid or retiree health insurance from an employer or a union, find out how these will work with each Medicare plan before you make any changes to your current coverage. This information may help you determine which plan is best for you.
Step 1: Find the Medicare Plans in Your Area
Not all the Medicare plans are in all parts of the country, but almost all people on Medicare will have a choice. Start by finding out which health plan choices besides the Original Medicare Plan are available in your area by going to Medicare Personal Plan Finder.
If you do not have any other Medicare plan available to you, you will be in the Original Medicare Plan. You don’t need to read any further, since the rest of this article deals with the other plans.
Step 2: Think About What's Important to You
Each person with Medicare has unique needs and concerns when it comes to health care. Some people are most concerned about keeping costs down. Others want the freedom to go to any doctor they choose.
Here are some key differences among the Medicare plans:
As you review each plan in your area, think about the things that are most important to you.
FYI: Find out as much as you can about each Medicare plan you are considering. Don't only rely on information from the plan alone. Get additional information from Medicare, your State Health Insurance Assistance Program (SHIP) and from people and organizations you trust.
Step 3: Compare the Costs, Benefits, Rules for Doctor Choice and Quality of Each Plan
The amount you pay for Medicare depends on a number of things:
On the surface, cost comparisons seem easy, but there could be hidden costs with some of the Medicare options.
For example, if you choose a Medicare HMO or PPO, you don't need to buy a Medicare Supplemental (Medigap) policy. (Medigap is insurance that helps pay for some of your costs in the Original Medicare Plan).
On the other hand, if you are in an HMO or PPO, and you decide to use a doctor outside the plan's network, you'll have to pay for some or all of that care yourself.
If you are in a Medicare Advantage Plan that provides prescription drug coverage, you don’t need to buy additional Medicare prescription drug coverage.
Find out how these costs are handled before you choose. Also keep in mind that cost alone can't tell you how good the care is. Medicare's Personal Plan Finder can tell you the specific costs of the plans in your area.
Here are some common situations to think about before choosing a plan:
If you travel frequently within the United States or leave your hometown for long periods of time:
The Original Medicare Plan and some Medigap policies will pay your routine health care costs anywhere within the United States. But if you join a Medicare Advantage Plan, such as an HMO or PPO, your coverage may be limited to the area served by the plan.
A Medicare PFFS plan will usually pay your health care costs as long as the doctor or hospital accepts the plan's payment. Be sure to check on where the plan's payment is accepted before you sign up.
If you travel outside the country:
Your health care may or may not be covered, depending on the plan you are in. The Original Medicare Plan does not cover care outside the country, except in some emergency situations in Mexico and Canada. Some Medicare Advantage Plans and Medigap policies do cover care outside the United States. Check your plan or policy before you travel.
If you have high prescription drug costs or if you want prescription drug benefits:
Consider the following:
If you have retiree health insurance from your an employer or from a union:
Before you retire, find out what your benefits and costs will be under your retiree health insurance. Your retiree insurance, together with Original Medicare, may pay for more of your health care costs and cost you less than a Medigap policy. Your retiree health insurance might also be used with a Medicare Advantage Plan.
FYI:Check out all the facts with the administrator of your retiree health insurance before making a decision about your Medicare options. If you give up your retiree health plan, you usually can't get it back. For example, you might lose it if you switch from the Original Medicare Plan to another Medicare plan.
If you are not sure you can pay for your Medicare costs or are on a limited budget:
Consider joining a Medicare HMO or PPO, where your costs generally will be lower. Also find out if you can get help from your state to pay some of your health care costs.
All Medicare plans offer the same basic set of benefits. However, some Medicare Advantage Plans may have additional benefits, such as eye care or prescription drugs.
To find out the specific benefits of the plans in your area, visit Medicare's Personal Plan Finder.
There are differences among Medicare plans in how much choice you have to pick your own doctors:
Another common concern about doctor choice is being able to go directly to a specialist. In the Original Medicare Plan, PFFS Plans and most PPOs, you can go directly to a specialist. In Medicare HMOs, you usually are able to see a specialist only if your primary care doctor first approves your visit.
Find out the rules about getting care for each plan you are considering and be sure to ask for a list of the doctors and hospitals in each plan's network.
FYI:All Medicare plans must pay for your health care costs away from home if you have an emergency or need urgent care.Information on the quality of care is available for the Original Medicare Plan and for Medicare HMOs in Medicare's Personal Plan Finder.
Quality information can tell you:
For example, you may be able to find out how many women in the plan get a mammogram to check for breast cancer. You may also be able to find out how many people in the plan get a drug called a beta blocker after a heart attack. People who get this drug are less likely to have another heart attack.
Step 4: Choose the Plan That's Best for You
After you gather the information about your plan choices and have thought about what's important to you, take your time sorting through the information you have.
Ask more questions and talk to people and groups that you trust. Help is available to you if you need it.
The SHIP in your state often has specific information about the plans in your area and any state laws or regulations in your state that affect people with Medicare.
The more you learn about your Medicare choices, the better prepared you will be to make the choice that is right for you.
AARP on Medicare
A series of articles from AARP to help you better understand your Medicare options.
Medicare Prescription Drug Coverage
This series of articles will help you sort through your drug coverage choices.
Medicare Prescription Drug Plan Finder
Learn about the program and find and compare prescription drug plans that meet your personal needs.
State Health Insurance Assistance Program (SHIP)
How to contact your State Health Insurance Assistance Program (SHIP), an important Medicare partner. Free one-on-one health insurance counseling to people with Medicare.
U.S. Agency for Health Care Research and Quality (AHRQ)
Lead federal agency conducting research on health care outcomes, quality, cost and use of health care services. Read “Your Guide to Choosing Quality Health Care.”