Key difference between Medicare Advantage and Medicare Supplement plans?
Oftentimes the traditional, Original Medicare Parts A and B is not quite enough to cover all your medical expenses. To cover these additional costs, there are two coverage options you can choose from: Medicare Advantage (also known as Medicare Part C) and Medicare Supplement (also known as Medigap).
In short, Medicare Advantage expands the benefits of Original Medicare, while Medicare Supplement helps you cover out-of-pocket expenses not included in Original Medicare benefits.
Medicare Advantage Plans
Medicare Advantage plans (also known as Medicare Part C) include the benefits of Medicare A and B, and may have networks of health providers. Medicare Advantage plans sometimes offer dental, vision, and hearing benefits. Some plans include pharmacy benefits, as well as a fitness benefit.
Plans can make changes to benefits yearly, including premiums, deductibles, co-pays, maximum out of pocket and provider networks.
Below is a brief breakdown of Medicare Advantage Plans:
A bundle of Original Medicare (Parts A and B), and sometimes Part D (prescription coverage).
Plan premiums can vary
Co-pays and coinsurance may be required
Annual Enrollment opens October 15 and closes December 7
For some, Medicare Advantage may be the right fit. For others, a Medicare Supplement may be a better fit.
Medicare Supplement Plans
Medicare Supplement plans, also known as Medigap, provide coverage to help you pay out-of-pocket expenses that Original medicare plan does not cover, including co-payments, deductibles, and co-insurance.
Beneficiaries must be enrolled in Original Medicare to purchase a Medicare Supplement Plan.
Below is a brief breakdown of Medicare Supplement Plans:
Supplements out-of-pocket expenses
Premium cost varies based on age, location, and desired coverage
Limits out-of-pocket costs depending on chosen plan
Enrollment is open any time of the year but may be subject to underwriting (health questions)
Guaranteed renewable
Current plans exclude drug coverage (separate Prescription Drug Plan may be chosen)
The coverage offered by Medicare Supplement Plans will vary depending on the specific plan you choose.
Weigh Your Options
If you are in need of additional coverage, a Medicare Supplement Plan or a Medicare Advantage Plan may be what you need. While both Medicare Supplement and Medicare Advantage have pros and cons, one can better meet your needs.
Our experts in your local networks can help you weigh these pros and cons, and make an informed choice. Contact us or book an appointment today to choose your best option.
