Medicare Supplement Insurance vs. Medigap: Which Health Insurance Plan?

Choosing the right Medicare plan can be overwhelming. At Overton Agency in Conway, Arkansas, we are here to help you understand the difference between Medicare Advantage Plans and Medicare Supplement Insurance Plans (Medigap) so you can make an informed decision.

Understanding Medicare Plans

Medicare is a federal health insurance program for people who are 65 or older, and some younger people with disabilities. There are different types of Medicare plans, each offering different benefits and coverage.

What is a Medicare Advantage Plan?

A Medicare Advantage Plan, also known as Medicare Part C, is an all-in-one alternative to Original Medicare. These plans are offered by private insurance companies approved by Medicare. They bundle together Medicare Part A (hospital insurance), Medicare Part B (medical insurance), and usually Part D (prescription drug coverage).

Medicare Advantage Plans may offer:

Comprehensive coverage including dental, vision, and hearing
Prescription drug coverage
Lower out-of-pocket costs
Extra benefits like fitness programs

Determining if you should enroll in a Medicare Advantage Plan is a major decision and should not be taken lightly since plans offer differing levels of coverage and additional benefits.

What is a Medicare Supplement Plan?

Medicare Supplement Plans, also known as Medigap, are policies offered by private insurance companies to fill the gaps in Original Medicare coverage. These plans help pay for some of the health care costs that Original Medicare doesn’t cover, such as copayments, coinsurance, and deductibles.

Medigap Plans offer:

Coverage for out-of-pocket costs not paid by Original Medicare
Freedom to choose any doctor or hospital that accepts Medicare
No need for referrals to see specialists

The Difference Between Medicare Advantage and Medicare Supplement Plans

Understanding the difference between Medicare Advantage and Medicare Supplement Plans is crucial for making the right choice.

Medicare Advantage Plans:

Replace Original Medicare
Offer additional benefits and lower out-of-pocket costs
Require you to use a network of doctors and hospitals

Medicare Supplement Plans:

Work with Original Medicare
Cover out-of-pocket costs like copayments and deductibles
Allow you to see any doctor or hospital that accepts Medicare

Choosing the Best Medicare Plan

When choosing the best Medicare plan for your needs, consider the following factors:

Your healthcare needs and frequency of doctor visits
Your budget and ability to pay premiums, copayments, and coinsurance
Whether you want prescription drug coverage included
Your preference for having a network of providers or the freedom to choose any doctor

At Overton Agency, we can help you compare different Medicare plans and choose the best one for your needs.

Can You Change Medicare Plans?

Yes, you can change Medicare plans during specific enrollment periods. For Medicare Advantage Plans, you can switch plans during the Annual Enrollment Period (October 15 – December 7) or the Medicare Advantage Open Enrollment Period (January 1 – March 31).

For Medicare Supplement Plans, you can change plans at any time, but you may be subject to medical underwriting if you change outside of your initial enrollment period.

What is a Medicare Advantage Plan vs Medicare Supplement Plan?