Discover the difference between Medicare Supplement vs Medicare Advantage in this article.

When you sign up for Medicare, you have to consider a few options. Original Medicare (Part A and Part B) covers many basic health costs, including hospital visits, doctor appointments, and medical procedures.

Original Medicare does not cover all health expenses. If you only have this type of plan, you will have to pay additional costs – like prescription drugs and vision and dental care, out of pocket.

You can cover these costs with two options:

• Medicare Advantage
• Medicare Supplement insurance (also known as Medigap).

What are Medicare Advantage plans?

Medicare Advantage plans (also known as Medicare Part C plans), are private health insurance plans approved by Medicare. These plans replace your Original Medicare coverage and must offer at least all the same benefits. Most Medicare Advantage plans also offer additional benefits, such as prescription drug coverage, as well as vision, dental, and hearing services.

When you use a Medicare Advantage plan, you are still participating in the Medicare program. Medicare simply pays your private insurance company to administer your new plan.

The benefits of a Medicare Advantage plan will vary depending on your insurance company and the plan you choose.

What is Medicare Supplement Insurance (Medigap?)

Like Medicare Advantage plans, Medicare Supplement (Medigap) plans are also provided by a private insurance company. However, Medigap is different from Medicare Advantage in that it works alongside your Original Medicare plan rather than replacing it.

If you choose a Medigap plan, the majority of your health expenses will still be covered by your Original Medicare plan (Part A and Part B). Your Medigap plan will simply provide additional coverage to help pay your deductibles, copayments, and coinsurance.

It’s important to note that Medigap plans no longer offer prescription drug benefits, so you will want to consider enrolling in a Medicare Part D Prescription Drug Plan to cover these costs. Additionally, if you enroll in a Medicare Supplement policy after your Initial Enrollment Period, you may be subject to a medical underwriting coverage contingency.