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Medicare Advantage Vs. Medicare Supplements

Once you reach the age of eligibility for Medicare, you will be faced with the choice of what type of Medicare plan you want. One option to consider is the Medicare Advantage plan, which aims to bundle all of the services you need into a single package. You could also choose to get basic Medicare and fill in any gaps in coverage with a Medigap policy, a type of Medicare supplement.

  1. Medicare Advantage

    • When you reach the age of 65, you can qualify for Medicare coverage from the federal government. Everyone can get Medicare part A and B directly from the government. You could also choose to pass on these options and get a Medicare Advantage plan. Medicare Advantage is a plan you purchase from a private insurance company and has many different medical benefits in one package. The government still has a say in what these plans can offer and how much they cost, but you will still buy them from a private company.

    Medigap

    • When you choose to go with the options that are presented by the federal government, you may notice that there are some gaps in coverage. Medicare part A provides basic hospital insurance while part B provides you with doctor coverage. If you need any additional coverages, you can buy supplemental insurance policies known as Medigap plans. With these plans, you can get a variety of coverages added on by paying a separate premium out of your own pocket. Some people prefer to go this route instead of getting a Medicare Advantage plan.

    Standardized Plans

    • One of the key differences between these two options is in the level of standardization that comes with them. If you get basic Medicare with a Medigap plan, you will choose from a list of standardized Medigap plans. Even though they are administered by private companies, all of the benefits are the same. The only difference is the price and the level of customer service that the company provides. With a Medicare Advantage plan, you can get more options and there will be several differences from one plan to the next.

    Networks

    • Another difference between Medicare Advantage plans and basic Medicare with supplemental insurance is the type of network you use. When you use basic Medicare, there are no networks to deal with. You can go to any medical facility that takes Medicare, which is large majority of medical facilities. When you choose to go with a Medicare Advantage plan, you have to stick with providers inside a specific network. Many of these plans are preferred-provider organizations or health-maintenance organizations, which have medical providers agree to contract with them at reduced rates.

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