Medicare Supplement (Medigap) vs Medicare Advantage

If you are new to Medicare or considering a change during the Annual Enrollment Period, understanding the difference between Medicare Supplement vs. Medicare Advantage is your first priority. These are two fundamentally different approaches to Medicare coverage, and the one you choose affects your costs, provider access, and flexibility for years to come.

While Medicare Supplement plans pay secondary to Original Medicare, Medicare Advantage plans become your primary source of coverage when you enroll. Medicare pays a set amount to the private carrier for the Medicare Advantage plan in which you enroll, and that carrier takes on your coverage needs for the calendar year.

Those new to Medicare may notice a considerable amount of Medicare Advantage plan promotion through advertisements and little to no promotion of Medicare Supplement plans. This does not mean one is better than the other. It simply reflects how each plan type is marketed.

There are several differences between Medigap vs. Medicare Advantage plans. A Medicare Advantage plan (Medicare Part C) is structured as an all-in-one option with low monthly premiums but requires you to use in-network providers and pay copays at each visit.

Medicare Supplement plans offer additional coverage to Original Medicare with low to no out-of-pocket costs. The most popular Medigap plan, Plan G, covers everything except the annual Part B deductible, giving you predictable costs throughout the year.

Medicare does not offer a one-size-fits-all plan. So, the best policy for you is the policy that best meets your healthcare needs.

Medicare Supplement plans are the best option if you want complete reassurance and predictability with your healthcare but are comfortable paying higher premiums in exchange for lower out-of-pocket costs.

In contrast, Medicare Advantage plans are the best option if you hope to save on monthly premiums and receive additional benefits while accepting responsibility for additional out-of-pocket costs at the doctor’s office.

Do you want predictable costs, the freedom to choose any doctor, avoid referrals, and peace of mind while traveling? If you answered yes, you are looking for a Medicare Supplement plan.

Are you comfortable with unpredictable copayments, strict doctor networks, and referrals in exchange for a lower monthly premium and additional benefits? If your answer is yes, Medicare Advantage could work for you.

The best part about working with agents is that no matter which option you choose, we make sure it is the best for you. Perhaps you are already thinking about making the switch from a Medicare Advantage to a Medicare Supplement plan, or the other way around. Either way, you can compare plans in your area to see real pricing.