However, Medicare has expanded beyond the traditional acute care settings. Part A benefits include inpatient hospital and related care. Coinsurance for some services applies. Part B also covers durable medical equipment that is deemed medically necessary. Beneficiaries face cost sharing in the form of premiums, deductibles, and co-insurance in addition to the costs not covered by Medicare.
Most elderly beneficiaries have supplemental coverage.
HMOs frequently add coverage such as prescription drugs or have lower co-payments. Because of these different coverages, Medicare will deny payment to suppliers. Medicare beneficiaries may also participate in a supplemental insurance program, Medigap. Medigap policies are private insurance designed to pay Medicare cost-sharing amounts. There are 10 standard Medigap policies and each offers a different combination of benefits.