Differences Between Medicare Supplements and Medicare Advantage

Lots of folks new to Medicare find it overwhelming trying to navigate the different plan options available to them. I want to share some basics about Medicare Supplement plans and Medicare Advantage plans.

Medicare Supplement plans, also known as Medigap plans, are private insurance plans that help cover some of the out-of-pocket costs associated with Original Medicare (Part A and Part B). These plans are designed to work alongside Original Medicare, filling in the gaps in coverage by paying for some of the deductibles, coinsurance, and copayments that Medicare does not cover.

In contrast, a Medicare Advantage plan is an all-in-one alternative to Original Medicare, provided by private insurance companies. These plans often offer additional benefits, such as prescription drug coverage, dental, vision, and hearing benefits, and may also include coverage for services like gym memberships and transportation. Medicare Advantage plans typically have lower out-of-pocket costs than Original Medicare, but they also have a more limited network of healthcare providers, which means you may need to choose from a smaller list of doctors and hospitals.