Final answer:
Medicare beneficiaries primarily have two choices for coverage plans—Original Medicare and Medicare Advantage. Original Medicare is split into Part A (Hospital Insurance) and Part B (Medical Insurance), whereas Medicare Advantage (Part C) often includes additional benefits like prescription drug coverage (Part D).
Step-by-step explanation:
Medicare beneficiaries can choose from two main types of coverage plans: Original Medicare and Medicare Advantage. Original Medicare includes Part A (Hospital Insurance) and Part B (Medical Insurance). Part A is mainly funded through a payroll tax and covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care. Part B is an optional program that covers certain doctors' services, outpatient care, medical supplies, and preventative services. Participants of Part B pay a monthly fee along with deductibles and copayments, while the government covers about 75% of the overall costs.
Medicare Advantage plans, also known as Part C, are offered by private companies that contract with Medicare. These plans include all the benefits and services covered under Part A and Part B, often include Medicare prescription drug coverage (Part D), and may include extra benefits and services for an additional cost. Thus, beneficiaries can primarily choose between Original Medicare and Medicare Advantage as their coverage plans.