Which type of Medicare plan replaces traditional fee-for-service Medicare?

Medicare Advantage, often referred to as Part C, is designed to offer an alternative to the traditional fee-for-service Medicare. This type of plan allows beneficiaries to receive their Medicare benefits through private insurance companies that contract with Medicare. Instead of using the original Medicare system, which consists of Part A (hospital insurance) and Part B (medical insurance), individuals enrolled in a Medicare Advantage plan receive all of their health care services through this managed care model.

Medicare Advantage plans often include additional benefits such as vision, dental, and hearing coverage, which are not typically found in original Medicare. They may also offer lower out-of-pocket costs and a cap on total out-of-pocket expenses, providing an added layer of financial protection.

In contrast, Medicare Part B focuses specifically on covering physician services and outpatient hospital care, while Medicare Cost Plans are hybrid plans that allow beneficiaries to combine elements of traditional Medicare and Medicare Advantage. Medicare Part D is specifically designed for prescription drug coverage. Thus, the key distinction is that Medicare Advantage replaces the traditional model by consolidating benefits and providing them through private insurance, aligning with the correct choice.