Medicare contracts with private insurance companies that offer Medicare Advantage (MA) and other health plans. If you join a MA Health Plan, the company offering the plan receives a fixed monthly amount from CMS. In return, your plan is responsible for providing your Medicare benefits including: hospital, medical and sometimes prescription drugs. You must be enrolled in both Medicare Part A and B to join a MA or other Medicare Health Plan.

• Plan must provide your Part A (hospital) and Part B (medical) Medicare benefits.
• Many MA and other Medicare Health Plans offer prescription drug coverage. If the plan you choose does not, you can choose a stand alone (PDP) prescription drug plan to receive your prescription drugs. Plans cover different drugs in their formulary.
• Co-pays, deductibles and maximum out of pocket costs vary from plan to plan.
• You must continue to pay your Medicare Part B premium.
• You don’t need to buy (and can’t be sold) a Medigap policy. It won’t cover your MA or other Medicare Health Plan deductibles, copays, or co-insurance.
• If you dropped a Medigap policy when you joined a MA for the first time and you want to return to Original Medicare, you may qualify for special Medigap protections that will guarantee your right to purchase certain Medigap policies within the first year of joining.
• MA Health Plans may offer benefits original Medicare does not, such as limited dental, vision, and fitness benefits.
• Original Medicare covers care everywhere Medicare is accepted.
• MA and other Health Plans may have limitations on the providers that you can see and hospitals you can use. This is often referred to as a network provider list.
• MA/other Medicare health plans include:
   
  HMO (Health Maintenance Organization):
  You must use doctors and hospitals in the network. If you receive care out of the network, you may pay more or the plan MAY NOT pay at all.
   
  Medicare Cost Plan:
  Similar to an HMO, but services received outside the plan are covered under Original Medicare.
   
  PPO (Preferred Provider Organization):
  You must use preferred doctors and hospitals, or pay more.
   
  PFFS (Private Fee-for-Service):
  You may use any doctor or facility that accepts the plans terms. If they don’t you will need to choose another doctor or hospital, or pay more.