Medicare, the federal government’s health insurance program for Americans 65 and older, is not a completely public program. About 20 percent of Medicare enrollees are in "Medicare Advantage" plans, offered by private companies under contract to the federal government. Private plans tend to be less expensive.
With original Medicare, all costs aren’t covered. For example, you’ll owe 20 percent of doctors’ bills and the cost of prescription drugs. Therefore, many people also buy Medigap insurance and the Medicare prescription drug plan to fill out their coverage.
With a Medicare Advantage plan, you don’t need to buy a Medigap policy; many Medicare Advantage plans include prescription drugs so you may not need to buy a drug plan. Moreover, per-visit or per-prescription co-pays may be modest. As a result, your total costs often will be lower with Medicare Advantage than it would be with original Medicare plus a Medigap policy plus a drug plan.
However, you may have to see certain doctors and go to certain hospitals to get the cost savings.
