A Medicare Cost plan, according to the Centers for Medicare and Medicaid (CMS) is defined as:
A type of [Medicare Advantage] HMO. These plans may work in much the same way, and have some of the same rules, as Medicare Advantage plans. In a Medicare Cost Plan, if you go to a non-network provider, the services are covered under the Original Medicare Plan. You would pay the Medicare Part A and Part B coinsurance and deductibles.The CMS Medicare & You document adds more information about Medicare Cost plans:
A Medicare Cost plan can include Medicare Part D drug coverage (MAPD) or a separate stand-alone Medicare Part D prescription drug plan (PDP) can be added to a Cost plan.
• In general, you can join even if you only have Part B.Note: You can add or drop Medicare drug coverage only at certain times
• If you have Part A and Part B and go to a non-network provider, Original Medicare covers the services. You’ll pay the Part A and Part B coinsurance and deductibles.
• You can join anytime the Medicare Cost Plan is accepting new members.
• You can leave anytime and return to Original Medicare.
• You can get your Medicare drug coverage from either the Medicare Cost Plan (if offered) or you can join a Medicare drug plan. Even if the Medicare Cost Plan offers drug coverage, you can choose to get drug coverage from a separate Medicare drug plan.