Medicare in Alaska

Medicare is a federal health insurance program for those aged 65 and over, as well as individuals who are living with certain medical conditions or disabilities. The program is divided into several parts, with Medicare Part A covering hospital stays and certain types of long-term care, while Part B covers preventative and outpatient care. Original Medicare includes Parts A and B, and participants can purchase supplemental coverage to help with the cost of other elements of care. Finally, there’s an additional element of Medicare called Part D, which covers prescription drugs.

Many private medical insurance companies offer Medicare Advantage (Part C), which offers a very similar level of coverage to Original Medicare (but does not cover hospice care) and also covers other expenses, such as vision or dental. Anyone who is eligible for Medicare in Alaska has access to a Medicare Advantage Plan, and there are plans with no monthly premium available.

In Alaska, there are 110,360 people enrolled in Medicare, and the state pays just over $1 billion in Medicare Part A and B payments annually. Uptake of Medicare Advantage is relatively poor in Alaska, with just 2% of those eligible enrolling in the program, compared to 48% nationwide. Uptake is increasing, however, as the percentage of people enrolled in Medicare Advantage grew by 8.33% in the last year. Costs for Medicare Part D fell in 2023, and 86% of people in Alaska with a stand-alone Medicare Part D plan have the option to change to one with a lower premium than they were paying in 2022.

Options for Medicare Coverage in Alaska

Original Medicare remains the most common way beneficiaries receive their Part A and Part B coverage. However, they can also opt for Medicare Advantage to receive Parts A and B Part D for prescription drugs are not covered in the Advantage Plans in Alaska.in 2022 Medicare beneficiaries can get additional coverage, including adding Part D to Original Medicare and/or complementing Original Medicare with Medicare Supplemental Insurance, often called Medigap.

Original Medicare (Parts A & B)

Original Medicare is administered by the Centers for Medicare & Medicaid Services and offers access to care services across the United States, unlike Medicare Advantage, which is typically limited to specific locations. If seniors wish to mitigate the cost of care services not covered by Original Medicare, they can opt for supplemental coverage.

Under this program, seniors pay for services as they receive them. They must pay an annual deductible, which is $1,600 for Part A and $226 for Part B in 2023. After they’ve paid this amount, Medicare covers all eligible services at 80%. Beneficiaries pay the remaining 20%.

Who Should Consider Original Medicare

Original Medicare may be a good option for those who:

• Travel frequently within the United States
• Don’t need extra benefits such as home-delivered meals and coverage for over-the-counter medication
• Want to choose their own prescription drug coverage

Medicare Advantage (Part C)

Medicare beneficiaries may replace Original Medicare with Medicare Advantage Plans, sometimes called Medicare Part C or MA Plans. These plans must provide the same level of coverage as Original Medicare (with the exception of hospice care), but may include additional coverage too.

Medicare Advantage is growing very slowly in Alaska. According to the Kaiser Family Foundation, 99% of Medicare Advantage enrollees in Alaska were enrolled as part of an employer or union group enrollment. The state currently has just two Medicare Advantage Plans available, both of which are operated by Lasso Health Care.

Who Should Consider Medicare Advantage

Where available, MA Plans may be a good option for those who are in relatively good health and prefer:

• Lower premiums
• An all-in-one solution
• Additional benefits like dental, vision and hearing care

Top Medicare Advantage Plans in Alaska

Below are the Medicare Advantage providers available in Alaska, along with the plan options and cost information provided as a range. The enrollment numbers include all plans offered by the single provider in the state. The information about MA plans in Alaska was updated in April 2022.

Medicare Prescription Drug Coverage (Part D)

Original Medicare doesn’t pay for most prescription drugs through Part A or B coverage. Instead, seniors purchase separate prescription drug policies, also called Part D coverage. Medicare contracts with private health insurance companies to provide this coverage. There are multiple plans to choose from with varying monthly premiums, which beneficiaries pay in addition to their Original Medicare premiums. While seniors don’t have to purchase prescription drug coverage when they’re first eligible for Medicare, not obtaining this coverage at this time may result in late enrollment penalties they pay for as long as they have Medicare if they enroll later.

Each prescription drug plan has its own formulary, or list of covered drugs. Formularies are typically split up into tiers. The tier a medication is in determines how much the insurance company pays and how much the beneficiary pays for it. Lower-level tiers are usually made up of generic and low-cost brand name drugs, while higher tiers are composed of more expensive brand name and specialty drugs. In most cases, the lower the tier, the lower the policyholder’s cost-sharing responsibility.

Who Should Consider Medicare Prescription Drug Coverage

Seniors who may benefit from prescription drug coverage include those who:

• Currently take prescription medication or expect to in the future
• Want to avoid late enrollment penalties
• Want to reduce out-of-pocket prescription drug expenses

Medicare Supplement Insurance (Medigap)

While Original Medicare provides coverage for many medical costs, seniors may still have significant out-of-pocket expenses. These may include copays, coinsurance and deductibles. Seniors may be able to reduce their cost-sharing obligations by purchasing a Medigap plan. These plans can only be used with Original Medicare. It’s illegal for private insurance companies to sell Medigap plans to those with Medicare Advantage plans.

For more information on Medigap plans, seniors can refer to the Best Medicare Supplement Companies of 2023 page.

Who Should Consider Medicare Supplement Insurance

Good candidates for Medigap may be those who:

• Have ongoing health issues and expenses
• Travel overseas often
• Want to access an expanded network of health care providers
• Expect to need health services not covered by Original Medicare

Medicare Resources in Alaska

Seniors aged 65 or older and individuals with qualifying disabilities benefit from the federal government’s Original Medicare program, which provides valuable health insurance coverage. Choosing a Medicare plan and signing up can be daunting for some beneficiaries. Seniors who feel overwhelmed by the process will find several resources in Alaska providing free assistance. They can receive one-on-one counseling, publications, referrals and information to help them navigate their Medicare benefits options and find the right coverage for them. These resources unravel the mystery of Medicare, Medicare Advantage, Part D prescription drug coverage and Medigap.