Medicare Advantage (Part C) was instituted in 1997 and allows recipients to obtain Medicare through private insurance companies. Unlike Parts A and B, the Medicare Advantage may include prescription drug coverage, although it may cost more and restrict the number of doctors the person may visit. In addition, prescription drug plans exist for people wishing to enroll.

Anybody receiving Part A and Part B may be qualified for this benefit. To receive this benefit, the individual must enroll in a prescription drug plan or a Medicare Advantage plan run by private insurance companies, but regulated by the Medicare program.

Part A allows patients staying in hospitals a deductible of $1,024 for the first 1-60 days of a hospital stay. For days 61-90, a $256/day co-pay may be required, while days 91-150 may require a $512/day co-pay. The patient may be responsible for any charges after 150 days.

Part B may include a deductible of $135.00 each year. After this is met, the patient may be required to pay a co-insurance payment of 20% of the Medicare approved amount for services rendered. Deductibles, co-pays and co-insurance costs may vary in Medicare Parts C and D. Changes to co-pays, deductibles and co-insurance costs may vary yearly as well.

Enrollees may be required to pay a premium for Part B Medicare. Premiums may be rendered based on a sliding scale, depending on how much the beneficiary earns in a given year. Part A beneficiaries may not require a premium if the beneficiary or their spouse has posted at least 40 quarters in which they paid taxes under the Federal Insurance Contributions Act. If the beneficiary or a spouse has not posted at least 40 quarters paying the tax, a premium may be required.

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