Medicare Advantage vs. Medicare Supplement: Which Is Right for You?

Choosing the right health insurance can be confusing, especially when it comes to understanding the distinction between Medicare Advantage and Medicare Supplement plans. At Green Insurance Agency in Orange Park, Florida, we’re here to help you make an informed decision. Call us today at 904-717-1176 for personalized assistance.

Understanding Original Medicare

Before diving into the details of Medicare Advantage and Medicare Supplement plans, it’s important to understand what Original Medicare includes. Original Medicare is made up of two parts:

• Medicare Part A: Covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care.
• Medicare Part B: Covers certain doctors’ services, outpatient care, medical supplies, and preventive services.

While Original Medicare offers substantial coverage, it doesn’t cover everything. That’s where Medicare Advantage and Medicare Supplement plans come in.

The Difference Between Medicare Advantage and Medigap

There are key differences between a Medicare Advantage plan and a Medigap plan, also known as Medicare Supplement Insurance. Understanding these differences can help you decide which option is best for you.

What is a Medicare Advantage Plan?

Medicare Advantage plans, also known as Medicare Part C, are offered by private insurance companies that contract with Medicare. These plans provide all your Part A and Part B coverage and may offer additional benefits, like prescription drug coverage, dental, vision, and hearing.

Medicare Advantage plans often come with:

• Lower out-of-pocket costs
• Additional benefits not covered by Original Medicare
• Network restrictions that may require you to use specific doctors and hospitals

What is a Medicare Supplement Plan?

Medicare Supplement plans, or Medigap insurance, help pay for some of the healthcare costs that Original Medicare doesn’t cover, such as copayments, coinsurance, and deductibles. These plans are sold by private insurance companies and can offer:

• Coverage for out-of-pocket expenses not covered by Original Medicare
• Flexibility to see any doctor who accepts Medicare
• No network restrictions

Medigap plans do not cover prescription drugs, so you may need to purchase a separate Medicare Part D plan for drug coverage.

Choosing Between Medicare Advantage and Medicare Supplement

When deciding between Medicare Advantage and Medicare Supplement, consider the following questions:

• Do you prefer lower monthly premiums with potentially higher out-of-pocket costs (Medicare Advantage) or higher monthly premiums with more predictable out-of-pocket expenses (Medicare Supplement)?
• Do you want additional benefits like dental and vision coverage?
• Are you comfortable with network restrictions, or do you prefer the flexibility of seeing any doctor who accepts Medicare?

Enrollment Periods and Eligibility

To sign up for Medicare, you must be eligible for Medicare Parts A and B. The first month you have Medicare Part B is typically the best time to enroll in a Medicare Supplement plan, as this is your Medigap open enrollment period. During this time, you can purchase any Medigap plan offered in your area without medical underwriting.

The open enrollment period for Medicare Advantage plans is different. It occurs annually, giving you the opportunity to switch from Medicare Advantage back to Original Medicare or vice versa.

We’re Here to Help

Understanding the differences between Medicare Advantage and Medicare Supplement plans can be overwhelming. At Green Insurance Agency, we are here to assist you with evaluating your options to ensure you make the best choice for your health insurance needs. Call us today at 904-717-1176 or visit our office in Orange Park, Florida, to speak with a friendly advisor. Let us help you find the right coverage today!