Medicare Advantage vs. Medicare Supplement (Medigap) Plans

You might be unsure of which plan is best for you if you’re new to Medicare or want to change plans. When selecting a plan to join, your initial choice should be between a Medicare Advantage plan and a Medicare Supplement plan. Enrolling in coverage requires knowing which sort of plan is best for you.

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Between Medicare Advantage and Medicare Supplement plans, there are numerous differences. Therefore, before making a choice, it is essential to conduct research and fully comprehend how each plan type functions. We are here to assist you, and you are not conducting your research alone.

What Are Medicare Advantage Plans?

Medicare Advantage programs are provided and managed by private insurance firms. These programs provide the major source of insurance for Medicare recipients. These private insurance firms are compensated by Medicare to assume your risk.

Medicare Advantage VS Medicare Supplement

These plans may also have a local doctor and hospital network, which means your coverage is not portable. Additionally, the plan might not be accepted as coverage by your present doctor.

The same benefits that come with Original Medicare must be provided by Medicare Advantage plans, and they may also offer extra benefits. These additional advantages, however, differ between plans. In exchange for a lower monthly premium when you sign up for a Medicare Advantage plan, you agree to pay higher out-of-pocket expenses through cost-sharing.

Prescription drug coverage is frequently included in Medicare Advantage plans. While not all plans provide prescription coverage, the majority of Medicare Advantage HMO and PPO plans do.

What Are Medicare Supplement (Medigap) Plans?

Private insurance providers also provide Medicare Supplement (Medigap) coverage. Nevertheless, irrespective of carrier, they must contain the same coverage. The remaining cost-sharing that you would ordinarily be responsible for with only Original Medicare is covered by Medicare Supplement plans.

Plans for Medicare Supplements allow you to budget your expenses. You will always be aware of your out-of-pocket maximums because all plans offer the same benefits. A Medicare Supplement plan does not require you to use a specific doctor’s network.

Any medical facility that accepts Original Medicare in all 50 states and the District of Columbia can provide you with coverage.

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Additionally, in jurisdictions where they are permitted, some Medigap plans—like Medicare Supplement Plan G—cover excess payments. You won’t have to pay more if the doctor won’t accept the Medicare assignment because your Medigap plan will cover any additional costs.

What is the Difference Between Medicare Advantage and Medicare Supplements?

When you enroll in a Medicare Advantage plan, it replaces Original Medicare as your primary source of coverage, whereas Medicare Supplement plans pay supplementary to Original Medicare.

In order to satisfy your coverage requirements for the entire calendar year, Medicare pays a specific amount to the provider of the Medicare Advantage plan in which you participate.

New Medicare beneficiaries can see that Medicare Advantage plans are advertised somewhat frequently, but Medicare Supplement plans are rarely if ever, promoted.

This is because Medicare Advantage and Medicare Supplement plans have different carrier profit margins.

One plan type will work better for you depending on your demands in terms of lifestyle, spending, and medical coverage.

Medicare Supplement vs. Medicare Advantage Pros and Cons

Medicare Advantage and Medicare Supplement plans differ in a number of ways. Medicare Part C’s Medicare Advantage plans are designed as all-inclusive choices with affordable monthly premiums.

Low to no out-of-pocket expenses are provided by Medicare Supplement plans, which provide supplemental coverage to Original Medicare. The advantages and disadvantages of Medicare Advantage and Medicare Supplement plans are listed in the chart below.

Plans for Medicare Advantage

Plans for Medicare Supplements Pros Cons Pros Cons

• Additional benefits (dental, vision, drug, etc.)
• Low monthly premiums
• Over 200+ plan options 

• Higher maximum-out-of-pocket costs (up to $10,000)
• Restrictions to doctors and hospitals
• Coverage does not travel with you (only covered in the plan’s service area)
• Most plans require referrals

• Low to no out-of-pocket costs 
• NO network restrictions
• NO referrals
• Foreign travel emergency coverage on most popular plans
• Coverage travels with you throughout the U.S.
• Standardized benefits 

• Higher monthly premium
• Additional plans for dental, vision, and prescription required
• 12 Plan options available

The plans are the best option for people who desire a low monthly premium but don’t mind paying more out of pocket for doctor and hospital visits. For individuals who desire low out-of-pocket expenses, travel-friendly coverage, predictable rates, and the ability to select their own doctors, these plans are great.

The main issue we hear from our clients when comparing Medicare Advantage and Medicare Supplements is that they are unable to forecast their out-of-pocket expenses when enrolled in a Medicare Advantage plan.

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On the other hand, Medicare Supplement plans to2 receive the most positive feedback from clients. Due to its simplicity and dependability, Medicare Supplement plans are typically maintained by beneficiaries. The icing on the cake for Medicare Supplement insurance is the choice to visit any physician who accepts Original Medicare.

Which is Better Medicare Advantage or Medicare Supplement?

Medicare doesn’t provide a universally applicable plan. Therefore, the coverage that best fits your healthcare needs is the one that is ideal for you.

If you want complete security and predictability regarding your medical care but are willing to pay higher premiums in exchange for lesser out-of-pocket expenses, Medicare Supplement plans are your best bet.

However, Medicare Advantage plans are your best choice if you want to obtain more benefits and pay fewer monthly premiums while still being responsible for additional out-of-pocket expenses at the doctor’s office.

We always advise Medicare Supplement plans because of their general simplicity and dependability. But we are aware it might not be practical for everyone. Regardless of the type of plan, our objective is to give you your finest options.

How Do I Choose Between Medicare Advantage and Medicare Supplement Plans?

Do you desire predictable expenses, the freedom to visit any doctor, the ability to avoid referrals, and travel-related peace of mind? You are searching for a Medicare Supplement plan if you said yes to the question.

In exchange for a cheaper monthly premium and more benefits, are you okay with erratic copayments, restrictive doctor networks, and referrals? Medicare Advantage might be beneficial to you if the answer is yes.

The best thing about dealing with agents is that we always make sure the option you select is the best one for you. Maybe you’ve already considered switching from a Medicare Advantage to a Medicare Supplement plan, or vice versa.

Call us at  +1(877) 255-0284 to find out your finest plan alternatives right away!