Part C

When not commonly used as Medicare Advantage is the common phrase, the phrase Part C refers to Medicare benefits delivered through health plans administered by private insurers. Part C was created by the Balanced Budget Act of 1997. Originally Part C, known as the Medicare+Choice program, covered coordinated care plans, Medicare Savings Accounts (MSA) plans, and private fee-for-service plans. Medicare+Choice plans were renamed “Medicare Advantage” through the Medicare Prescription Drug, Improvement, and Modernization Act. Subsequently, Medicare Part C has become most identified with Medicare Advantage plans, even though Medicare Cost Plans and MSA plans still operate. Medicare Advantage plans typically combine Part D prescription drug benefits within the benefits of Original Medicare Parts A and B. Many Medicare Advantage plans have a $0 premium (although enrollees still pay their existing Part B premium obligations).