Sixteen percent of the population of Michigan uses Medicare.
Medicare is a federal health insurance program for American senior citizens. However, individual states are allowed to set the kinds of Medicare supplement programs offered there. Medicare Parts A and B are often called traditional Medicare. Parts A and B are standardized across the country. Parts C and D and Medicare supplement plans can vary, however. The Medicare options available for Michigan residents depend on what they live in, whether or not they buy supplements and through what company they enroll.
Traditional Medicare
Medicare Part A is primarily hospital insurance. It covers in-patient hospital services, as well as home health and hospice care. Medicare Part A is often free of charge, and citizens over the age of 65 who do not qualify for free Medicare can purchase it for a monthly premium. Part B Medicare offers more preventive services, such as doctor's visits, as well as outpatient hospital care. Both Medicare Parts A and B are available statewide in Michigan to people who meet the federal requirements.
Medicare Part D
Medicare Part D is prescription drug coverage only. Part D is not bought from the federal government but is instead offered through private companies working with Medicare. You can buy Part D only or you can get it bundled with other benefits as part of a Medicare Advantage plan. If you buy Part D as an addition to traditional Medicare, you usually only need to be already enrolled in Part A or Part B. If you get it as part of a Medicare Advantage plan, you will need to be enrolled in both.
Medicare Advantage
Medicare Advantage plans in Michigan are available depending on your county. These are Medicare supplemental plans that must include all the services offered by Part A and Part B, except hospice care, and usually include prescription drug coverage. Other benefits like vision and dental insurance may also be included as part of your plan. Medicare Advantage in Michigan is offered in four different ways: HMO, PPO, private fee-for-service and medical savings plan policies. HMO plans generally have lower premiums but require you to choose a primary care physician and get all future referrals for services through this doctor. You also have to arrange to receive all your health care services from providers in the HMO network. PPOs offer a little more choice, but going outside the network will result in higher co-pays. PPOs usually cost more per month than HMOs as well. Private fee-for-service (PFFS) plans may have inexpensive or no monthly premiums, but you must go to a health care provider who agrees to the PFFS terms. Medicare Advantage plans that work with medical savings accounts combine high-deductible health insurance with payments from Medicare, which you can use for deductibles and other medical expenses.
Medigap
As of 2010, there are 12 standard Medicare supplement plans, also called Medigap. Not all states offer all of the available Medigap policies. These plans are categorized by letter, A through N. As of May 31, 2010, plans E, H, I and J were discontinued, although customers who already purchased them are allowed to keep using them. All insurance companies approved to sell Medigap policies in Michigan must offer plans A through F, M and N. Except for plan N, no Medigap policies in Michigan require co-pays, as long as you receive your care in the state. Plan A is a basic plan, while Plan F offers preventive care, at-home recovery services and foreign travel emergency benefits. Plan F can be purchased as a high-deductible policy; Plans K and L also have annual out-of-pocket costs.
