Medicare Supplement Plans and Medicare Advantage Plans can seem very similar at first glance. Both are private insurance plans that cover Medicare expenses. However, they are very different in design and intent. Medicare Advantage Plans are an alternative to Original Medicare, while Medicare Supplement Plans are meant to cover out-of-pocket expenses that Original Medicare doesn’t cover. Keep reading to learn more about the differences.
Medicare Advantage Overview
Medicare Advantage Plans, or Medicare Part C, are insurance plans offered by private insurance companies. As an alternative to Original Medicare, Medicare Advantage Plans must cover everything otherwise covered by Parts A and B of Original Medicare and often include additional coverage. For example, some plans include prescription drug coverage, yearly out-of-pocket expense limits, hearing, vision, and dental benefits.
Medicare Supplement Plans Overview
Did you know Original Medicare does not cover 100% of healthcare costs? For example, Part B of Original Medicare often will pay for only 80% of costs, leaving you to pay for the additional 20%. Additionally, Part A of Original Medicare will usually only cover costs until a certain time, at which point you are required to cover some or all of the costs.
This is where Medicare Supplement Plans come in. Medicare Supplement Plans are plans offered by private insurance companies whose sole aim is to cover out-of-pocket expenses. There are ten plans, lettered A through N, each with different coverage. Some plans will cover almost all out-of-pocket expenses, while some will only cover limited costs. Medicare Supplement Plans are not something you can use instead of Original Medicare. These are plans you use in addition to Original Medicare.
Which Plan Is Right for You?
Understanding the purpose between Medicare Supplements and Medicare Advantage Plans is crucial in determining which option is best for your coverage needs. To get started, call us today, and we can help!