Medicare Advantage vs. Medicare Supplement (Medigap)

What’s the difference between Medicare Advantage and Medicare Supplement plans, and how do you decide between them? Can you have both types of plans at once?

As you may already know, Medicare, the federal health insurance program in the United States, doesn’t cover everything. Many people opt for additional insurance to help cover the gaps. When comparing Medicare Advantage versus Medicare Supplement (Medigap), it’s essential to understand that both types of plans can reduce your out-of-pocket expenses.

After all, who wants to pay a hefty deductible every time they go to the hospital, or cover a significant portion of the cost of an expensive MRI?

Medicare Advantage and Medigap (Medicare Supplement) plans are the two main types of coverage you can purchase to help with these costs. Understanding how each type of plan works will help you choose the best option for your needs.

Medicare supplements act as secondary insurance to Medicare Part A and Part B. This means they cover costs after Medicare has paid its share of the bill. You remain enrolled in Original Medicare, and Medicare forwards the remaining bills to your supplemental insurance company. The supplement then pays its portion based on the plan you have chosen. Each Medigap plan offers different benefits, with the most popular ones being Plan F, Plan G, and Plan N.

In contrast, Medicare Advantage plans operate independently from Medicare. When you enroll in a Medicare Advantage plan, you receive your benefits directly from the plan itself, not from Medicare. You agree to use the plan's network of healthcare providers, except in emergencies. Copayments are typically required for your healthcare services. These plans are designed as an alternative to Original Medicare.