Medicare Advantage Plans vs Medicare Supplemental

Medicare is a health insurance program administrated by the federal government, providing health insurance coverage to people who are aged 65 and over, or younger disabled persons that meet special criteria. Medicare is administered by the Centers for Medicare and Medicaid Services, a component of the Department of Health and Human Services. It is the largest health insurance service in the United States.

In order to be eligible for Medicare you must be a citizen of the United States and meet certain requirements. You are eligible if

• You are 65 years of age or older
• You are younger and have certain disabilities
• You have End-Stage Renal Disease, which requires a transplant or dialysis

Medicare is broken down into three main categories: the Original Medicare Plan, Medicare Supplemental Insurance (Medigap), and Medicare Advantage Plans. There are four parts to Medicare:

• Hospital Insurance Part A
• Medical Insurance Part B
• Medicare Advantage Plans Part C
• Prescription Drug Coverage Part D

You will automatically be enrolled in the Original Medicare Plan Part A and B (although you can opt out of Part B) when you reach the age of 65 and receive Social Security Benefits.

To fill the gaps Original or 'Traditional' Medicare doesn't cover, you can add additional coverage, either by adding:

1. Supplemental Health Insurance, also called 'Medigap' which is provided by private insurance companies that are approved by Medicare

2. Prescription Drug coverage (Part D), provided by private insurance providers,

or 3. Switching to a Medicare Advantage Plan (Part C), that is also provided by private insurance providers and is a combination of your Part A and B coverage. You have the option to include Part D if drug coverage isn’t already included. Medicare Advantage Plans consist of four plans: Health Maintenance Organization (HMO), Preferred Provide Organization (PPO), private fee for service plans (PFFS), and Medicare special needs plans.

What Is The Difference Between Medicare Supplement Plans and Medicare Advantage Plans?

While adding a supplemental health insurance plan (also called Medicare Supplement Plan or Medigap) means, you keep your Traditional Medicare and add a 'supplemental' insurance to get better health care, enrolling in a Medicare Advantage Plan means that you will move out of the Traditional Medicare into a private Health Plan provided by a private insurance company.

What Is The Advantage Of Medicare Advantage Plans?

Everyone enrolled in a Medicare Advantage plan must pay the same monthly premium as those enrolled in traditional Medicare Part B. Additional costs depend on the benefits provided by the plan, with some charging an additional premium or having higher deductible and co-payment requirements. However, there are many Medicare Advantage plans that offer more coverage protection than Medicare Parts A and B, but have zero extra monthly premiums above the Part B amount that normally is paid.

Many Medicare Advantage plans have extra benefits and lower co-payments than the Original Medicare Plan.

While Medicare Advantage plans can provide better coverage, the choices seem overwhelming and selecting the one that fits you best can be a daunting task. Depending on where someone lives, the Medicare Advantage plan options number in the hundreds.

We have created a Medicare Made Simple website to help you decide and provide you with all information about Medicare Supplemental Insurance and Medicare Advantage Plans that you need to find the plan that is best for your health care needs.