Traditional Medicare Supplements are sold by private insurance companies and supplements Original Medicare Parts A and B. These policies cover gaps in Original Medicare Parts A and Part B such as co-payments, co-insurances, and deductibles you would otherwise pay yourself. Most Medicare Supplements do not have a network and you will continue to pay your Part B premium.

A Medicare Advantage Plan is another way to obtain your Medicare benefits. Medicare Advantage Plans, sometimes called “Part C” or “MA Plans,” are offered by Medicare-Approved private insurance companies that must follow rules set by Medicare. If you join a Medicare Advantage Plan, you will still have Medicare, but you will get most of your Medicare Part A (Hospital Insurance) and Medicare Part B (Medical Insurance) benefits from the plan, not from original Medicare. Many Medicare Advantage Plans offer additional benefits not available through Original Medicare such as dental, vision, hearing, gym memberships, and other items or services.

A Cost Plan is somewhat of a hybrid – a cross between a Medicare supplement and a Medicare Advantage Plan. Like an Advantage Plan, a Cost Plan has a network of doctors and hospitals that must be used. There may be some cost sharing (a copay) when visiting a doctor, for a hospital stay, labs, or diagnostic tests, but this cost sharing all adds up to an out-of-pocket maximum to limit the annual risk for the insured.