Which is better, Medicare Supplement Insurance or Medicare Advantage?
We are often asked “Which is better Medicare Advantage or Medicare Supplement Insurance?” Of course it depends on each individual and Medicare Advantage plans are very good for some people.
Medicare Advantage plans fit best for those who are looking for Low monthly premiums. Of course with low premiums come higher cost if when you need medical services. Medicare Advantage do have more co-pays and coinsurance and have limitations when it come to their network of doctors, hospitals and other providers.
For those who don’t mind and can handle all of the extra costs that accompanies the lower premiums of Medicare Advatage plans then this plan might be right for you.
In general a Medicare Supplement Insurance (a.k.a. Medigap) plan offers more freedom to see the doctors of your choice with fewer if any out of pocket cost in the event of a Medical necessity. But the premiums are typically a bit higher – but maybe well worth it.
Compare Medicare Advantage and Medicare Supplement
If you were to put in order the options from least to most expensive, in our opinion the basic “Medicare Advantage” plan is a better starting point for most people then just having Original Medicare (Part A and Part B) at little or no additional cost. It will include a better distribution of benefits and typically include the Part D which one would have to purchase as a stand alone plan if the choose to just have Original Medicare.
The next level up (Lower co-pays and deductibles) would be an enhanced or Premier “Medicare Advantage” plan. This would be one with a slightly higher premium, but presumably lower deductibles and co-pays. These plans have become more scarce as CMS (Center for Medicare And Medicaid Services) require a certain level of distiction between plans from a typical provider.
Finally, the highest degree of protection (and, of course, the highest premium) is a Medicare Supplemental Insurance plan, also called “Medigap”. For those on a tigher budget talk to one of our advisors about Medicare Supplement plan N. This can really be great option for those trying to balance premium cost with the freedom to see any doctor.
With 12 Medicare Supplement choices (See Medicare Supplement Comparison Chart) and many more Medicare Advantage choices, this means a little more thought. Fortunately, we have done that work for you, and can help you select the plan that’s best for your needs. For quotes and assistance fill out the Medicare quotes request here.