Medicare Advantage vs Medicare Supplement
Choosing a Medigap Plan:
A summary of some of the differences and similarities between Medicare Advantage and Medicare Supplement plans. Beyond a basic explanation; we review coverage, networks, premiums and prescription drugs.
-Part A and B – Medicare Advantage plans provide Medicare Part A and B coverage through contracted private health organizations and insurance companies. Medicare Supplement plans provide Medicare Part A and B coverage directly through Medicare itself.
-Networks: Advantage Plans usually (though not always) have network restrictions- this is because the plans are funded by Medicare but managed by private organizations and these organizations have contracts with hospitals and care providers. Medicare Supplement plans are limited only my Medicare acceptance- wherever Medicare payment is accepted, Medicare Supplement coverage will be accepted as sell.
-Medicare Advantage plans are funded annually, meaning coverage is contracted on an annual basis. Medicare Supplement coverage is guaranteed as long as premiums are paid.
-Prescription Drugs: Medicare Advantage plans usually have prescription drug coverage options associated with each healthcare plan. Medicare Supplements require a separate drug coverage policy.