Medicare Supplement plans and Medicare Advantage plans are both offered by private insurance companies. However, they work differently and serve different purposes.
MEDICARE ADVANTAGE PLANS
Medicare Advantage plans provide the same benefits as Medicare Part A and Part B. These plans are sold by private insurance companies and offer extra benefits that Original Medicare doesn’t, such as:
● Prescription drug benefits
● Routine dental services
● Fitness programs
To sign up for a Medicare Advantage plan, you must enroll in Medicare Part A and Part B. Some plans have premiums that cost as low as $0, though you must continue to pay your Part B premiums.
With Medicare Advantage plans, you get your Original Medicare benefits and more from a private insurer.
MEDICARE SUPPLEMENT PLANS
However, Medicare Supplement plans help to cover the out-of-pocket costs associated with Original Medicare. To qualify, you must have Part A and Part B.
It covers the following expenses associated with Medicare Part A and Part B.
● Foreign travel emergency expenses
Though private insurance companies offer Medicare Supplement plans, they are regulated by the government and thus standardized. There are ten available Supplement plans lettered from Plan A to Plan N. And, while Medicare Supplement plans help cover certain out-of-pocket costs associated with Original Medicare, Medicare Advantage plans do not.
Medicare Advantage plans offer additional coverage and Original Medicare coverage, but they will not cover out-of-pocket costs like deductibles or coinsurance.
Not only is this a significant difference, but most Medicare Supplement plans allow you to visit any doctor who accepts Medicare, while Medicare Advantage plans usually have specific provider networks.
Medicare Supplement plans do not include prescription drug coverage, but you can purchase a standalone prescription drug plan. However, most Medicare Advantage plans include prescription drug coverage.
Deciding between a Medicare Supplement plan or a Medicare Advantage plan is entirely up to the type of coverage you would like to receive. At Medigap Supplement Headquarters, we can help you break down your coverage needs. So reach out to us today to get your coverage started.
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