When making decisions about your Medicare coverage, it is important to understand your options.

Medicare is a government entitlement benefit for those who are 65 or older or are permanently disabled workers who have paid into the Social Security system during working years. There is one Medicare program; however, there are 2 specific ways to elect to receive your benefits.

The original or traditional format of Medicare is administered directly through the government and is called “Fee for Service”.  This means that benefits are paid to providers as services are needed. Medicare A is 100% paid by the federal program and covers hospitalization, hospice, and home health care.  Medicare part B covers medical services and equipment, and 75% of this benefit premium is paid by the federal program. The beneficiary pays the remainder of the premium.  In 2009, the Medicare B premium is $96.40 per month.

With Traditional Medicare, patients can see any doctor who accepts assignment and Medicare will pay 80% on most medical services and treatments, after a deductible is met.

Medicare Advantage plans are provided by private insurance companies.  The companies receive funds from the Medicare program to create, develop, and manage Medicare health plans.  Advantage plans can come in the form of HMO (Health Maintenance Organization), PPO (Preferred Provider Organization), or PFFS (Private Fee for Services).

With an Advantage plan, the arrangements of copayments, premiums, and deductibles will be different for each plan. You may also be required to use only the specific network of doctors and other medical providers within the plan.

When making your decision, it is vital that you understand the differences between Traditional Medicare and Medicare Advantage plans. The choice is yours. Make it count.

This article was given to us by Mary Beth Best of Voice Inc