Medicare Supplement vs Medicare Advantage

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What is the difference between Medicare Supplement vs Medicare Advantage?

Research the difference between Medicare Supplement vs Medicare Advantage.  Learn which coverage is better for you by comparing the differences.  Consider the payment, cost, coverage, network, extra benefits, companies, signing up, and convenience of both types of plans before enrolling.

How the plans pay: Medicare Supplement Plans vs Medicare Advantage Plans

Medicare Supplement plans help fill the gaps of Medicare.  Supplemental plans, also called Medigap, pay after Original Medicare pays.  Providers need to see your red, white, and blue Medicare card and your Medigap insurance card.

Medicare Advantage Plans (Part C) pay instead of Medicare.  Individuals still have Medicare, but a private insurance company will pay the providers for approved-services.  Providers only need to be shown your Medicare Advantage Plan card from the insurance company you apply with and not your Medicare card.

The Difference in Cost(Premiums): Medicare Supplement vs Medicare Advantage

Medicare Advantage wins this, only based on the monthly cost of the two policies.  Advantage plans could cost you much more in co-pays and coinsurance than a Medigap plan.

Medicare Supplement plans coverage is based more on premiums than on co-pays, coinsurance, and deductibles.  The cost of a plan varies depending on which specific Medigap plan you’re comparing (A-N).  Supplemental plans are standardized in 47 states and pay for Original Medicare’s gaps in coverage.  Compare premiums from multiple insurance carriers to reduce the cost for the exact same policy.  Supplemental insurance does not come with Part D insurance.  You will need to purchase a stand-alone Prescription Drug Plan.

Medicare Advantage coverage is different than Medigap in the fact that they’re based on co-pays and coinsurance instead of premiums.  Advantage Plans have a low to no monthly premium.  These policies usually have a Prescription Drug Plan built into them so you don’t have to purchase a stand-alone Part D policy.

 

Which has a better network, Medicare Supplement or Advantage?

Medicare Supplement wins this one.  Supplemental plans do not have a restricted network.  As long as the provider accepts Medicare, the supplemental plan will pay for the approved services.  On the flip-side, Medicare Advantage plans have networks like a health maintenance organization (HMO) and preferred provider organization (PPO).  You’re restricted to service areas and providers.