Medicare+Choice, also known as Medicare Part C, was created to give people on Medicare more options and flexibility in how they receive their healthcare coverage.
Understanding Medicare+Choice in Plain English
Medicare+Choice was a major change to the Medicare system introduced by the Balanced Budget Act of 1997. Before this program existed, most people used what’s now called “Original Medicare,” which is run directly by the federal government.
Medicare+Choice allowed Medicare beneficiaries to choose private health plans approved by Medicare instead of staying only with Original Medicare. The idea was simple: give people more choices, encourage competition, and potentially lower costs while improving care.
Although the name “Medicare+Choice” isn’t used much anymore, it’s important because it later evolved into what we now call Medicare Advantage (Medicare Part C).
Why Medicare+Choice Was Created
The government introduced Medicare+Choice to solve a few problems:
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Give seniors and people with disabilities more control over their healthcare
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Offer alternatives to the traditional Medicare system
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Encourage private insurance companies to offer innovative plans
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Help manage rising healthcare costs
Instead of a one-size-fits-all approach, Medicare+Choice aimed to let people pick a plan that better matched their health needs and budget.
How Medicare+Choice Worked
Under Medicare+Choice, eligible Medicare beneficiaries could enroll in private health plans that contracted with Medicare. These plans had to provide at least the same level of coverage as Original Medicare, but they could structure benefits differently.
Common Medicare+Choice options included:
Managed Care Plans
These were the most popular choices and included plans like HMOs (Health Maintenance Organizations) and PPOs (Preferred Provider Organizations). They usually required members to use a network of doctors and hospitals, which helped keep costs lower.
Private Fee-for-Service Plans
These plans allowed members to see any doctor who agreed to the plan’s payment terms. There was often more flexibility, but costs could vary more.
Medicare Medical Savings Accounts (MSAs)
These combined a high-deductible health plan with a medical savings account to help pay for healthcare expenses.
Each Medicare+Choice plan set its own rules, premiums, and extra benefits, as long as it met Medicare’s basic requirements.
What Made Medicare+Choice Attractive
Many people found Medicare+Choice appealing because of the added benefits. Depending on the plan, members could receive coverage for things Original Medicare didn’t usually include, such as:
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Prescription drugs
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Dental and vision care
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Hearing services
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Wellness programs
For example, someone managing a chronic condition might choose a Medicare+Choice plan that offered coordinated care and lower out-of-pocket costs for frequent doctor visits.
Medicare+Choice vs. Original Medicare
Original Medicare allows you to see almost any doctor who accepts Medicare, but it doesn’t cap out-of-pocket costs and offers limited extra benefits.
Medicare+Choice plans often included cost limits and extra coverage, but they usually required members to follow network rules. It became a trade-off between flexibility and potentially lower costs.
What Happened to Medicare+Choice?
In 2003, Medicare+Choice was renamed Medicare Advantage as part of new Medicare reforms. While the name changed, the core idea stayed the same: private insurance plans offering Medicare benefits with added features and structured care.
Today’s Medicare Advantage plans are direct descendants of the original Medicare+Choice program.
Why Medicare+Choice Still Matters Today
Even though the term isn’t commonly used now, Medicare+Choice laid the foundation for the modern Medicare Advantage system. Understanding it helps explain why Medicare offers private plan options today and how beneficiaries gained more control over their healthcare choices.
If you’ve ever wondered why Medicare includes so many plan options, Medicare+Choice is where it all started.
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