Original Medicare vs. Medicare Advantage (“Part C”)

One of the most common questions I get from clients turning 65 is “Do I need Part C for Medicare?” Many are surprised that they don’t need Part C, otherwise known as “Medicare Advantage” at all.

There are two main ways to get Medicare.

Option #1: Original Medicare – Includes Part A and Part B. You can also add Part D and Supplemental Coverage for more comprehensive coverage. Part C is not included in this option.

Option #2: Part C (also known as Medicare Advantage) - is an “all in one” alternative to Original Medicare. You pay one premium and the plan often includes Part A, Part B, and usually Part D.

Below are some of the pros and cons of Original Medicare.

Below are the average costs of Original Medicare.

Below are some of the pros and cons of Medicare Advantage.

Below are the average costs of Medicare Advantage.

When I walk clients through the options, it typically comes down to five main questions. 

• What type of care are you currently getting? 

• Do you have doctors that you do not want to leave?

• Do you plan to travel a lot in retirement? 

• How much are you willing to pay in monthly premiums? 

• Can you absorb expensive out-of-pocket costs?

The answers to those questions will get you most of the way there. For the last bit, The Center for Medicare & Medicaid Services puts out a great brochure on the differences between the two options to help consumers make a more informed decision. 

Happy Planning,

Alex

This blog post is not advice. Please read disclaimers.