MEDICARE CHOICES.

• Position: A wide range of plans from Medicate is discussed - Brief Article

If you are covered by Medicare, you face a bewildering array of new plans as the government struggles to put a lid on escalating costs. The Institute of Certified Financial Planners, Denver, Colo., recommends that you take your time evaluating the options. The cost differences can be significant; eventually, you won't be able to change plans easily; and not all plans may be available in your area.

Regardless of which plan you go with, basic Medicare services will be covered. You don't have to switch to a new plan or do anything special to stay in the traditional Medicare program--what now is being called the Original Medicare Plan. If you don't choose any of the other options, you automatically will be enrolled in the traditional program. Original Medicare pays for all services Medicare covers on a pay-per-visit basis, but doesn't cover all medical services or prescriptions. You are required to pay a co-insurance and deductible, which is one reason you may want to switch to one of the new plans.

You can stick with your current Medicare HMO, which generally restricts you to its network of doctors and hospitals, but covers some things not covered by traditional Medicare. However, this assumes the HMO will qualify under the new rules, and also assumes the HMO decides to stay in Medicare. Many HMOs are dropping their Medicare plans.

To choose one of the new options in the program--Medicare+Choice or Medicare Part C--you must have Medicare Parts A and B and not have permanent kidney damage. Here is a quick review of the new options:

HMOs with point of service. This allows beneficiaries to go outside the HMO network for services, though with higher out-of-pocket payments.

Provider-sponsored organization. PSOs resemble HMOs except they are run by the doctors and hospitals providing the services.

Preferred provider organization. You can go outside the network of doctors and hospitals for an extra out-of-pocket cost.

Private fee-for-service. This is basically private health insurance, except that Medicare will pay a premium for Medicare-covered services. You can select any doctor or hospital you like. The...