What is the difference between an Advantage Plan and a Supplement Plan?

This is probably the question that confuses people the most when deciding what choice to make with Medicare.  There are several major differences between Advantage plans and Supplement plans.  There are pros and cons to each. Here is a comparison between the two choices.

What is an Advantage Plan?

Medicare Advantage plans are a popular low cost alternative to Medigap coverage. These insurance policies are offered by private insurance companies with a contract from Medicare. Advantage plans will usually have a low or $0 premium in addition to your regular Part B premium. This type of plan may include Part D prescription drug coverage although health coverage only is also available. 

There are many types of Medicare Advantage plans available and you should check to see which plans are offered in your county. We have included some brief descriptions and helpful tips to provide you with a better understanding. You may also contact us to speak a live representative who will answer any specific questions that you may have.

In all types of Medicare Advantage Plans, you're always covered for emergency and urgently needed care. Medicare Advantage Plans must cover all of the services that Original Medicare covers except hospice care. Original Medicare covers hospice care even if you're in a Medicare Advantage Plan.  Medicare Advantage Plans may offer extra coverage, like vision, hearing, dental, and/or health and wellness programs. Most include Medicare prescription drug coverage (Part D). 

What is a Medicare Supplement Plan?

Medicare Supplements or Medigap are private insurance policies designed to cover the gaps in Medicare coverage. It is important to research and shop for the best rates in your area. All plans are "standardized" and must offer the same level of coverage depending on which policy you choose. You may find substantial price differences between each insurance company. Our representatives will help you by providing you with a plan comparison from the various companies so that you can make an informed decision.Example: If you choose a Plan F Medicare Supplement plan you will receive the same exact benefits regardless of the company you enroll with. In this case it may be wise to choose the company that has the lowest premium.

In most states Medicare Suplement plans are seperated into 12 categories Plans A-L. As of July 2010 Plan N And M were added. Each plan has a different level of coverage and you should choose depending on your specific needs. Eligibility and enrollment periods may vary depending on the state where you live.

Medicare is a Federal program and insurance plans are regulated by individual States. You will need to find out which specific plans are available in your area. Each County has different plan offerings.