Medicare in Alaska

The federal government administers Original Medicare, a health insurance program that primarily covers seniors aged 65 or older and younger individuals with qualifying disabilities. Original Medicare includes Part A for inpatient hospital, skilled nursing, home health and hospice care and Part B for outpatient care, doctors’ visits and preventative services. Medicare Part C, called Medicare Advantage, and Part D, commonly referred to as prescription drug coverage, are provided by Medicare-approved private insurance companies — not the federal government.

Annual enrollment in Medicare is expected to grow nationwide by about 1.5 million beneficiaries each year between 2021 and 2029. In Alaska, 108,032 individuals enrolled in Medicare for the 2022 plan year. The state has around 732,000 residents, with just under 15% enrolled in Medicare. Alaska spent nearly $912 million on Medicare in 2019, which breaks down to $9,246 per Medicare enrollee.

Medicare Advantage is the private plan alternative to Original Medicare. It’s grown exponentially over the last decade in nearly all states, but its growth has been basically stagnant in Alaska. The state had only two Medicare Advantage Plans available in 2022, the first time since 2010 the state offered any. Residents in 15 of Alaska’s 29 county equivalents had access to these two plans.

This guide provides a detailed look at Medicare in Alaska, including an overview of Medicare coverage options and the top Medicare Advantage plans available. It also has a list of resources for seniors to turn to for assistance applying for Medicare and making informed decisions about their health insurance needs.

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 is open to seniors aged 65 and over, along with those under 65 years old, but with certain disabilities or end-stage kidney disease . It includes two parts. Part A covers inpatient hospital care, nursing home and skilled nursing care, hospice and home health care. Part B, or medical coverage, pays for medically necessary goods and services such as durable medical equipment, mental health services and emergency medical transportation. 

Unlike most private Medicare plans, Original Medicare’s provider network isn’t limited to the beneficiary’s geographic region, making it easier to obtain services while traveling within the country. In most cases, Medicare doesn’t pay for health services the individual receives outside the United States. 

Under this program, seniors pay for services as they receive them. They must pay an annual deductible, which is $1,556 for Part A and $233 for Part B in 2022. After they’ve paid this amount, Medicare covers all eligible services at 80%. Beneficiaries pay the remaining 20% out of pocket.

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 but may include additional coverage it doesn’t. These plans offer an all-in-one solution and must be purchased from a private insurance company approved by Medicare that must follow set rules.

Unlike most states, Medicare Advantage is growing very slowly in Alaska. However, the Kaiser Family Foundation still listed an average of 1% of beneficiaries with Medicare Advantage Plans in 2020. Per KFF, the average rose to 1.1% in 2021, including 23 of 12,204 Medicare beneficiaries in Fairbanks and 548 of 40,676 beneficiaries in Anchorage.

Large portions of the state still had zero beneficiaries enrolled in Medicare Advantage in 2022 when Alaska had two Medicare Advantage Plans available. Lasso Healthcare offered both plans, which were Medical Savings Account plans with high-deductible health plans and medical savings accounts.

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 2022 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.