We are all familiar with Medicare, the federal health insurance that becomes available to you once you turn 65. But unless you're already enrolled in Medicare, you may not fully understand all the options that come along with it, such as a Medicare Advantage plan.

Maybe you're nearing 65. Maybe you've recently enrolled in Medicare but are unhappy with your coverage and want to explore other options. Whatever the case may be, let's cover some key points about Medicare Advantage.

Who can enroll in Medicare?

Medicare enrollment starts three months before you turn 65 and ends three months after the month you turn 65. This time period is referred to as your initial enrollment period (IEP). If you miss this period, you can enroll during the General Enrollment Period, but it's best to sign up during your IEP to avoid a late enrollment penalty.

Note, you may be automatically enrolled for Medicare if you are 65 and already receive Social Security or Railroad Retirement benefits. In this case, you don't have to manually enroll, and you will receive your card in the mail.

Who can enroll in a Medicare Advantage Plan?

Medicare consists of Part A (hospital services) and Part B (medical services). Anyone enrolled in Medicare Part A and Part B can enroll in a Medicare Advantage Plan. If you're in your IEP, you can choose to go straight to a Medicare Advantage plan.

There is also an optional Part D that is offered through Medicare (prescription drug coverage), but you don't have to be enrolled in Part D to enroll in a Medicare Advantage plan.

Why enroll in a Medicare Advantage Plan?

Medicare Part A and Part B do not cover things such as prescription drug coverage, routine dental and vision care, long-term care, and hearing care. This is where a Medicare Advantage plan comes in, also referred to as Medicare Part C. A Medicare Advantage plan includes the same standard benefits that Original Medicare includes (Part A and B), plus some or all of the extras mentioned above. If a Medicare Advantage plan does not include prescription drug coverage, you may be able to add a Medicare Part D plan.

Besides offering additional benefits, Medicare Advantage plans offer an annual out-of-pocket maximum, something that Medicare doesn't. Out-of-pocket expenses can add up, so for some people, this can save money and also serve as peace-of-mind.

To be clear, if you choose to enroll in a Medicare Advantage plan, it will replace your Medicare Part A and Part B and serve as your sole plan (although in some cases you can add on Medicare Part D).

Who offers Medicare Advantage Plans?

Medicare is managed by the federal government, but Medicare Advantage plans are managed by private insurers. This means that private insurers have the ability to control the plans they offer, along with how much they charge.

The Medicare Advantage plans available to you will depend on where you live, and which private insurance companies offer coverage in your area. For instance, offerings for Medicare Advantage in San Antonio will be different than offerings in other cities around the country.  Speaking with a local agent is best, as they understand the local market.

There are five major types of plans: Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), Private Fee-for-Service (PFFS) plans, Special Needs Plans (SNPs), and Medical Savings Accounts (MSAs). Because there are so many different Medicare Advantage plans available, you should shop around. You'll need to consider your lifestyle, health condition, and finances while searching for a Medicare Advantage plan to best fit your needs.

I've heard of Medigap - what is that?

Medigap is a private health insurance you can purchase to cover extra costs not covered by Medicare. Like Medicare Advantage, Medigap policies are available if you have Medicare (Part A and B). You cannot have a Medicare Advantage plan and Medigap. Medigap is often referred to as Medicare supplement and you can learn more at Medisupps.com.

Understanding the fine details of Medicare can feel overwhelming at times, so always reach out for help if you need it.