What are Medicare Supplemental Plans?
Medicare Supplemental Plans, also known as Medigap plans, are designed to work alongside Original Medicare (Part A and Part B). These plans are sold by private insurance companies and provide additional coverage to fill the gaps in Medicare. Medigap plans help pay for out-of-pocket costs such as deductibles, coinsurance, and copayments. There are standardized Medigap plans labeled with letters (Plan A, Plan B, etc.), each offering different levels of coverage. It's important to note that Medigap plans cannot be combined with Medicare Advantage plans.
What are Medicare Advantage plans?
Medicare Advantage plans, also known as Part C, are offered by private insurance companies approved by Medicare. These plans provide all the benefits of Original Medicare (Part A and Part B) and often include additional coverage such as prescription drugs (Part D), dental, vision, and hearing. Medicare Advantage plans typically have networks of doctors and hospitals that beneficiaries must use to receive the full benefits of the plan. Unlike Medigap plans, Medicare Advantage plans replace Original Medicare rather than supplement it.
Key Differences between Medicare Supplemental Plans and Medicare Advantage plans
Coverage: Medicare Supplemental Plans provide additional coverage to fill the gaps in Original Medicare, while Medicare Advantage plans replace Original Medicare and often offer additional benefits. Costs: Medicare Supplemental Plans require paying a monthly premium in addition to the monthly Part B premium, while Medicare Advantage plans may have lower premiums but often have copayments and other out-of-pocket costs. Flexibility: Medicare Supplemental Plans allow beneficiaries to see any doctor who accepts Medicare, while Medicare Advantage plans often have networks of providers. Prescription Drug Coverage: Medicare Supplemental Plans do not include prescription drug coverage, while many Medicare Advantage plans include Part D prescription drug coverage. Supplemental Coverage: While Medigap plans are designed to supplement Original Medicare, Medicare Advantage plans provide a comprehensive alternative to Original Medicare. Out-of-Pocket Costs: Medicare Supplemental Plans can help reduce out-of-pocket costs, especially for those who require frequent medical services, while Medicare Advantage plans often have set copayments and coinsurance for various services. Travel Coverage: Medicare Supplemental Plans may offer coverage for travel outside the United States, while Medicare Advantage plans typically have limited coverage for out-of-network services.