Understanding the differences between Medicare Advantage vs. Medicare Supplement

PRESS RELEASE
Published August 4, 2023

The Medicare system can be overwhelming, and intimidating. Most seniors struggle to understand all the different parts, and plans involved with Medicare. And with the billions of dollars spent every year on advertising the plans, it certainly doesn’t get any easier.

So, let’s break down the two main options for your Medicare coverage: Medicare Supplements, and Medicare Advantage.

Medicare Supplements

Medicare Supplement plan, also known as a Medigap plan (just to make it more confusing), is an insurance policy that that supplements your Original Medicare (Parts A & B). The supplement helps pay the portion of Medicare costs that Original Medicare does not cover, such as the 20% coinsurance in Part B, and the large deductible in Part A.

Since Prescription Drugs is not covered in Part A or Part B of Medicare, the supplement does not cover prescriptions either. The supplement only covers, what Original Medicare covers.

Important points of consideration when choosing a Medicare Supplement:

  • Also monthly rates vary from carrier to carrier, a plan with the same letter is the same from one insurance company to the next
  • You can go to any doctor, any hospital, anywhere in the USA, as long as the provider accepts Medicare
  • You can change your Medicare Supplement at any time during the year. No need to wait for the Annual Election Period (AEP)
  • Medicare Supplements are ideal for people that travel often, or just want the peace of mind of having little-to-no out-of-pocket costs

Medicare Advantage

Medicare Advantage, also known as Part C, is the privatized version of Medicare. It acts as an “all-in-one” alternative to Original Medicare. The plans incorporate Part A, Part B, and usually Part D of Medicare, and sometimes, additional benefits above and beyond that of which Original Medicare offers.

Important points of consideration when choosing a Medicare Advantage Plan:

  • Plans vary based on the county you live in
  • Plans have doctor and hospital networks; usually HMO or PPO
  • You can only (with a few exceptions) change coverage during the Annual Election Period (AEP)
  • Advantage Plans are ideal for people, who’s doctors already accept a plan, and don’t mind having networks in exchange for, often, lower overall cost

The numerous options to consider for your Medicare coverage, having an understanding of the two main options will help you be able to properly protect your health, and financial life. Do not allow yourself to be swayed by a smooth-talking insurance salesman, or a charming celebrity endorser, or buy a plan because of the “freebies”. Likewise, do not allow yourself to become over-insured either.

Trust your instincts, and do what is right for you and your family.

CDN Newswire