There is yet another choice besides traditional Medicare Parts A, B. D, and a supplemental Medigap policy. Some choose Medicare Advantage Plans for medical and prescription drug coverage purchased through private insurance companies. Also called Part C, Medicare Advantage has a monthly cost, in addition to the Part B premium, that varies depending on which plan you choose. With Medicare Advantage, you don't need to sign up for Part D or buy a Medigap policy.
How does Medicare Advantage Plans, or Part C, work? Well, similar to traditional Medicare, you are responsible for copays, deductibles and other out-of-pocket costs. In many cases, Medicare Advantage policies charge lower premiums than Medigap plans but have higher cost-sharing. Importantly, provide choice may be more limited with Medicare Advantage.