Medicare Supplement vs. Medicare Advantage

During this time of year a lot of people ask about the difference between a Medicare Supplement and a Medicare Advantage plan.  The following is a description of the two coverages:

There are two ways to get Medicare coverage: (1) remain on Original Medicare and enroll in a Medicare Supplement plan, (2) enroll in a Medicare Advantage plan.

Medicare Supplement Plan:

• These plans are designed to cover out of pocket costs such as deductibles, coinsurance and copays with Medicare Part A and B. 

• There is a monthly premium for a Medicare Supplement. 

• If you are changing to a Medicare Supplement from a Medicare Advantage plan there can be underwriting (health questions) and you can be approved or declined.

• These plans do not cover additional services such as dental, vision and hearing.

• Coverage outside the United States is limited.  If you will be traveling outside the United States, you should consider purchasing a travel medical policy and we can assist you with this coverage.

Medicare Supplement Advantages:

• You can utilize any doctor who accepts Medicare in the United States.

• The policy is guaranteed renewable.  This means the insurance company cannot cancel the policy for any reason except non-payment.

Disadvantage to Medicare Supplement:

• Premium costs typically increase each year.

• You must also enroll in a prescription drug plan for coverage of your Part D prescription drugs.

Medicare Advantage Plan:

• These plans are under contract with Medicare but administered by private insurance companies. They pay the Part A and B benefits instead of Medicare.

The benefit of having a Medicare Advantage Plan:

• Plans include coverage for both Part A and B deductibles and out of pocket cost associated with Original Medicare.  You must still pay your Part B premiums.

• Prescription drug coverage is included on many plans at no additional cost.

Types of Medicare Advantage Plans:

• There are several types of plans such as PPO, HMO and special needs plans.

Additional Benefits:

• Many Medicare Advantage plans include dental, vision, hearing and transportation benefits.

Disadvantage to Medicare Advantage:

• You must use a network provider for medical care unless it is an emergency or urgent care. Please keep in mind that many of these plans have robust networks of providers and we can research your providers to see if they are in-network.

In Summary, both a Medicare Supplement and Medicare Advantage plan offer great coverage options.  One is not better than the other, and it is more about which plan is best for a particular individual based on their medical and financial needs.

If you would like to review your current plan during the AEP, or you are considering moving to a Medicare plan we will be glad to visit with you and provide a detailed proposal for your options.

Request a Medicare Supplement or Medical Advantage Proposal