A handy glossary to help you understand the meaning of basic Medicare terms.
ORIGINAL MEDICARE
Coverage managed by the federal government. You can choose this option, or you can buy a plan from a private insurer instead.
MEDICARE ADVANTAGE
A type of Medicare approved health insurance plan from a private company you can choose to cover most of your Part A and Part B benefits instead of Original Medicare. It usually also includes drug coverage (Part D).
MEDIGAP
If you sign up for Original Medicare to cover your Part A and Part B, you can buy a Medigap policy (known as Medicare Supplement Insurance) from a private insurance company to help pay your share of costs that aren’t covered by Original Medicare. You can only buy Medigap if you have Original Medicare.
DEDUCTIBLE
The amount of costs you pay out of pocket before coverage kicks in.
CO-PAY (COPAYMENT)
A flat dollar amount you pay upfront for certain services.
CO-INSURANCE
The percentage of the cost for covered services you pay after the deductible has been paid.
PREMIUM
A periodic payment you make to Medicare, an insurance company, or a healthcare insurance plan for health or prescription drug coverage.
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*Medicare Advantage is not available in Alaska.
This article is intended to explain Medicare in simple terms and will help you with some things to consider before selecting a Medicare insurance plan.
Please consult your personal independent professionals for answers to your specific questions.
Medicare overview information on this website was developed by Transamerica Resources Inc. to help consumers understand certain aspects about Medicare. Viewing this Medicare overview does not require you to enroll in any Transamerica plans. Plans are insured and offered through separate Transamerica companies.
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