Opt for Traditional Medicare

Medicare is not simple.

The government publishes the Medicare & You Guide every year.

It's over 120 pages.

When you initially sign up for Medicare, you have two choices, traditional Medicare and Medicare Advantage, or as I like to call it, Medicare Disadvantage.

Traditional Medicare consists of Parts A as in Alpha, and Part B as in Baker, and Part D as in Delta.

Part A is for hospitals and some other in-house care.

Part B is for doctor care, outpatient care and medical supplies.

Part D is for prescription drug plans.

Medicare does not cover vision, dental or hearing.

Also, people on traditional Medicare usually get Medicare supplement plans, also known as Medigap plans.

Supplement plans cover costs that traditional Medicare does not cover and reduce out-of-pocket expenses.

Without a supplement plan, Medicare covers 80% of the costs and the enrollee is responsible for the other 20% with no cap on out-of-pocket expenses.

Traditional Medicare does not cover vision, dental, or hearing.

Medicare Advantage is private insurance mostly paid for by the government.

These plans usually include vision, dental, and hearing, although the coverage may not be all that good, especially for dental.

Advantage plans also usually include drug plans.

In terms of costs, traditional Medicare and Advantage plans each include the monthly Part B premium.

Medicare plans require extra costs for the supplement plans and for the drug plans.

Supplement plans have different plan types distinguished by letters.

All plans with the same letter designations have the same benefits.

Usually the better the benefits, the higher the monthly premium.

Medicare Advantage plans can have anywhere from zero extra premium to more than $200 per month.