How Medicare Works

Learning about Medicare can be a daunting task. But it doesn’t have to be. HAP is here, helping you understand the basics of Medicare (Parts A, B, C and D), the three main types of Medicare (Original, Medicare Advantage, and Supplemental), and the enrollment timeline all the way from signing to switching when a plan doesn’t meet your needs.

Everyone has different wants and needs. There's no single answer as to which Medicare coverage is best, but HAP can help you find a plan that works for you.

What type of plan should you choose?

Original Medicare	Medicare Advantage	Medicare Supplement (Medigap)
Provided by the federal government	Provided by health insurance companies See HAP's Medicare Advantage plans	Provided by health insurance companies. See HAP's Medicare Supplement plans.
Helps pay for hospitals and doctors	Helps pay for hospitals, doctors and other services	Helps pay for hospitals, doctors and other services
Includes Parts A & B No coverage for Part D prescription drugs, dental, hearing or vision	Known as Part C. Includes Parts A & B Most plans offer Part D prescription drug coverage, dental, hearing or vision	Must be enrolled in Parts A & B No coverage for Part D prescription drugs, dental, hearing or vision
Must pay 20% coinsurance for most services (once deductible is met) No limit on out-of-pocket expenses $0	Many plans require 0-20% coinsurance (once deductible is met) Out-of-pocket maximums protect you $0 or more, depending on the plan	Many plans require 0-20% coinsurance (once deductible is met) Out-of-pocket maximums protect you Additional monthly premium
If you take prescription drugs, see specialists, or have to visit a hospital, you may wind up paying hundreds or even thousands of dollars out-of-pocket if you only have Original Medicare	Many people select Medicare Advantage plans because prescription coverage is often included and the monthly premiums are usually much lower	For some people (like frequent travelers), the flexibility and benefits that come with Medicare Supplement plans can justify their typically higher premiums
People who sign up for Original Medicare often also purchase a Supplement Plan (Medigap) and a Part D (Rx) plan	People who sign up for this usually only have one plan, as most include drug coverage and you won’t need Medigap	You are only eligible if you have Original Medicare (Parts A & B). People often also sign up for a Part D (Rx) plan
You will face higher premiums if you don't sign up for Parts A & B on time Adding Part D later costs more if you don't maintain other equivalent coverage	If you sign up on time for a Medicare Advantage Plan that includes Part D, you will not face any penalties If you're late, the same penalties apply as with Original Medicare	If you enroll after the six-month Medigap Open Enrollment Period at age 65, you may be charged more for preexisting conditions or even be turned down

Note: If you choose Original Medicare, a Medicare Supplement plan, or some Medicare Advantage plans, and need drug coverage, you'll need to purchase a separate Medicare Part D plan. Adding drug coverage later will cost more per month.

Why would I need more than Original Medicare?

Want to chat?

Click the orange "Chat with an Expect" tab at the bottom of this page, give us a call, or fill out the form and we'll call you.

Still looking? Click on "Compare plans" below to view all of our Medicare Advantage plan offerings.

Call a HAP Medicare expert

(800) 868-9885 (TTY: 711)

Monday-Friday, 8 am to 8 pm

Compare plans side-by-side online

Compare plans

Fill out the form below and we'll give you a call

Next: Medicare enrollment timeline

Health Alliance Plan (HAP) has HMO, HMO-POS, PPO plans with Medicare contracts. HAP Medicare Complete Duals (HMO D-SNP) is a Medicare health plan with a Medicare contract and a contract with the Michigan Medicaid Program. Enrollment depends on contract renewals.

Resources