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Medicare Supplement Policies vs. Medicare Advantage

Once you reach the age of 65, you have several decisions to make regarding healthcare and finances. One of these important decisions relates to Medicare. Original Medicare (Part A and B) covers many medical expenses. However, there are significant costs that will not be covered under original medicare alone. To ensure that most (if not all) of your healthcare costs are covered, you have two options: Medicare Advantage and Medicare Supplements, but these are very different plans.

Medicare Advantage is a replacement to original Medicare. You will still be in the Medicare program, but will receive your benefits through Medicare Advantage instead of the federal program. While a minimum benefit must be provided, Medicare Advantage Plans are not standardized. Therefore, the different Advantage plans vary widely in benefits and cost. They may offer some coverage that extends beyond original Medicare (such as dental and vision).

Medicare Supplements (also known as Medigap) work with and in addition to Part A and B of Original Medicare. These plans offer coverage for gaps left by Part A and B, with benefits to cover costs such as co-insurance, deductibles, etc, but do not offer coverage beyond original Medicare (for example vision or dental). There are 10 different plans available in most states. While the premiums may vary between different insurance companies, the benefits are standardized. This means that the coverage provided in Part F from one company will be identical to the coverage provided by Part F from another. Medicare Supplements will be accepted by any provider who accepts Medicare, while Medicare Advantage plans may have a more limited network.

Understanding the differences in these plans can be overwhelming. Let us help you find the plan right for you by contacting an agent today.