Medicare offers high-quality coverage mainly to people 65 and older, but knowing which Medicare plans to sign up for can be confusing. Today we’re going to look at the differences between Medicare Advantage and Medicare Supplement (Medigap) plans to help you decide which is right for you.
Medicare Advantage
Medicare Advantage (also called Medicare Part C) is a health insurance plan offered by private insurance companies as an alternative to Original Medicare. Medicare Advantage covers all the Medicare-covered benefits, and in some cases, it also provides additional benefits like dental, hearing, vision, and fitness coverage.
Most Medicare Advantage plans also include Medicare Part D coverage, which gives you coverage for prescription drugs and medications.
A drawback to Medicare Advantage over Original Medicare is that you’re slightly more limited with your choices of doctors and hospitals. You may also require different authorizations for care, depending on the hospital or practice. The tradeoff for this drawback is that your private insurance company can manage your use of care in various ways.
When looking for a Medicare Advantage plan, you have over 30 different options and plans to choose from. These include Preferred Provider Organizations (PPOs), Health Maintenance Organizations (HMOs), Private Fee-for-Service (PFFS) plans, and Special Needs Plans (SNPs).
Some plans may be available in your area, while others may not. Remember that Medicare Advantage plans provide the same benefits as Original Medicare, along with some additional coverage items not included in Original Medicare, as mentioned above.
Another benefit of Medicare Advantage is that coverage is constantly expanding.
Some of the top new non-medical benefits offered include meals and non-medical transportation.
Medicare Advantage plans offer many convenient coverage options and a sizable cost-saving opportunity for new enrollees.
Medicare Supplements
Private insurance companies also sell Medicare Supplement plans (commonly known as Medigap plans). Medicare Supplement plans are designed to fill the gaps in your Original Medicare coverage.
When enrolling for a Medicare Supplement plan, you have ten different coverage options to choose from. Each plan has a letter name ranging from A to N. These plans provide standardized coverage to help cover deductibles, coinsurance, and copays. It’s important to note that Medicare Supplement plans don’t cover prescription drugs. You must purchase a Medicare Part D plan if you’d like to have your prescription medications covered.
The benefit of Medicare Supplement plans is that they make out-of-pocket costs easier to budget for and much more predictable. This takes a lot of the financial stress off your mind since you don’t have to worry about what’s owed every time you see a doctor or stay at a hospital.
It’s because of this wide range of coverage that people are recommended to opt for Medicare Supplement coverage while they’re still healthy and fit. Since this is the kind of coverage most people need when they’re sick, but many don’t have. The downside is that Medigap plans are more expensive than Medicare Advantage plans.
Which Plan Is Right For You?
While having coverage is important, it’s also important to ensure that the coverage you sign up for is right for you. If you have any questions regarding which coverage options would be best for you, speak to one of our Medicare experts today!