When insurance is the topic of conversation, there are some important terms or phrases that keep coming up: Medicare, Medicaid, Medigap, Supplement, Advantage. The moment you find yourself in a bit of a tizzy because you cannot differentiate these terms, one from another; then you know you have to sit up and take a step back. You would be in a position of great difficulty if you are unaware of what these terms mean and how they could shape the way you spend your money on your health and wellbeing. So, before we start looking at Medicare Advantage plans 2021, we are first going to learn the difference between these terms so that we have no confusion whatsoever at any point in the future.
The Basics About Medicare
This is the first step to clearing up a constant confusion. When you refer to Medicare, you are talking about a federal government program which is basically or practically the same, wherever you are in the United States. It is an insurance program where medical bills are paid or reimbursed to those who have already paid into this fund earlier. The range of coverage could be different for each person. You also need to bear in mind that this program that is managed by the federal government, is administered by the Centres for Medicare & Medicaid Services. This is an agency that is operated by the Federal Government. While you are working, you keep contributing to this fund, which begins to support you, once you are 65 years old or if you are young and have a disability.
Medicaid Now
Medicaid on the other hand is a support or assistance program which is meant for people of any age in the low-income group. This is a program for which patients or beneficiaries pay little or nothing for their medical expenses. In some rare cases, they might be called upon to make a payment – this is called a co-payment. The main thing about this program is that it differs from state to state. However, the states are expected to run the program based on the guidelines issued by the Federal Government. You could find out if you are eligible for this particular service, by visiting the government website that caters to all matters relating to Medicaid.
Now that Medicare and Medicaid have been clearly explained, please continue to read to get the basic facts about Advantage, Supplement and Medigap plans.