Medicare Advantage Plans & Medicare Supplement Plans

Medicare Advantage Plans & Medicare Supplement Plans
Medicare Advantage Plans

Monday, January 18, 2010

What is the difference between a Medicare Supplemental Insurance (Medigap) and Medicare Advantage?

While Medicare Supplement Plans, also called 'Medigap', and Medicare Advantage plans both provide additional coverage on top of the Medicare Part A and Part B coverage, they offer uniquely different benefits.

While Medicare supplemental insurance plans typically have higher monthly premiums, these plans pay a member's share of the costs of Medicare-covered services thus eliminating or reducing out-of-pocket payments, including coinsurance, deductibles, preventive services and at-home recovery services.

Enrollees would have to purchase a stand-alone Part D drug plan.

Under Medicare Advantage, you typically have lower monthly premiums with a Part D drug plan included, but you will have some out-of-pocket expenses. Usually, you have to use the services of the health insurers' provider networks to be covered.

Advantage Plans offer many value-added benefits, including discounts on gym memberships, health and wellness service and a variety of discount programs, at no additional charge.



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