What’s the Difference: Medicare Advantage Plans vs. Medicare Supplements
January 11, 2024 | John Demko
When you are starting Medicare or reviewing your plan options during the Annual Election Period there is a lot to consider. One of the biggest decisions you will make is what type of Medicare coverage is right for you, with the two most popular options being original medicare with or without a traditional Medigap policy or a Medicare Advantage plan. In this blog, we’ll look at these two plan types, the differences between them and how to determine what is ideal for you.
Medicare Advantage Plans (MA / MAPD)
Medicare Advantage Plans, sometimes called “Part C” or “MA Plans” are offered by private insurance companies approved by Medicare. These plans will provide coverage for your approved Medicare Part A (hospital) and Part B (medical) coverage instead of through government-provided Medicare. Because of this, Medicare Advantage Plans are not the same as Medicare Supplements (Medigap), which work in conjunction with original Medicare.
Find Out More About Medicare Advantage Plans:
What Is A Medicare Advantage Plan?
How to Know If You Need a Medicare Advantage Plan
Does Your Medicare Advantage Plan Offer Extra Benefits?
Medicare Supplement Plans (Medigap Policy)
Medicare Supplement Insurance plan that pays for extra costs not typically covered by Original Medicare. This generally includes copayments, coinsurance, and deductibles. Medigap plans are sold by private insurance companies licensed in your state. Medigap differs from Medicare Advantage Plans and most often does not cover Part D prescription medication costs. The specific services that are covered by your Medigap plan will vary depending on which plan you choose.
Find Out More About Medigap Plans:
What is Medigap and Do I Need It?
What You Need To Know About Medicare Supplements In Minnesota?
What’s the Difference: Medicare Advantage Plans Medicare vs. Medicare Supplements
| Features | Medicare Advantage (MA / MAPD) | Medicare Supplement (Medigap) |
| Enrollment | ● Enrolled in Medicare Part A & B ● Live in the plan’s service area ● Must change if moving outside service area |
● Enrolled in Medicare Part A & B ● Live in the state where the policy is offered ● Can keep even when moving out of state |
| Cost (in general) | Lower premium, higher copays & coinsurance | Higher premium, few copays |
| Provider Network | Many Medicare Advantage plans will have a network of contracted providers and facilities | You have access to any provider that accepts Medicare assignment nationwide |
| Travel | May or may not provide in-network medical coverage while traveling, with limit of 6-9 months | Open ended travel, no time restraints. May even cover some nationwide medical care |
| Prescription Drug Coverage | Coverage can be in included in an MAPD, but cannot be bought separately | Coverage is not included but can be obtained with a stand alone prescription drug plan (PDP) |
What’s Right for Me?
As you navigate the complicated landscape of Medicare, having a solid understanding of the various types of Medicare plan options and their differences will help you feel well-equipped to make a decision that aligns seamlessly with your healthcare needs. Whether you are leaning towards the comprehensive coverage of original Medicare with a Medigap policy or opting for the personalized advantages of a Medicare Advantage plan, the choice will depend on your lifestyle and individual healthcare needs.
It’s not just about selecting a plan; it’s about electing the ideal healthcare coverage that ensures your well-being and peace of mind. The good thing is you don’t have to do it alone. The experienced team of licensed Medicare agents at Twin City Underwriters has been helping people like you make the right Medicare decisions for over 50 years. Contact us today to start your Medicare journey on the right foot.
Choosing a Medicare plan can be difficult. Twin City Underwriters helps Medicare recipients in Minnesota, Wisconsin, North Dakota, South Dakota, Iowa and Florida find the Medicare plan that meets their unique needs. Schedule a one-on-one meeting with one of our Medicare insurance brokers to get your questions answered!
Do you need help with Medicare, insurance and health plans? Explore your options with Allina Health Aetna, BlueCross BlueShield of Minnesota, Medica, UCare, United HealthCare and more. We work with you to find the best plan for your needs and budget. Contact us today to get started.
