Medicare Supplement insurance is a health insurance coverage plan that is not a part of the original Medicare. Medigap policies help with things you would otherwise have to pay for yourself if you aren’t receiving medical care through your original Medicare Plan.
On the other hand, Medicare Advantage provides coverage benefits standard in Medicare, including everything from hospitalization to prescription drugs. However, this option comes at a higher cost than basic coverage plans. People can choose which one they want based on their needs and budget.
Difference Between A Medicare Advantage Plan And A Medicare Supplement
1. Difference in Coverage
Medicare Advantage is an alternative to the Medicare Supplement. The Medicare Supplement policies help fill in the gaps of the original coverage, but Medicare Advantage plans provide a complete medical range. When enrolled for Medicare, you are covered for hospitalization for up to 100 days with your original Plan and up to 60 days with the supplement plan. The Advantage Plan, however, has no time limit on hospitalization or other coverage.
2. Difference in Cost
Medicare Advantage plans are more expensive than the Medicare Supplement. The supplemental plan costs can range from $400 to $800 per year for an individual and about $600 to $900 per year for a couple. The Advantage Plan costs around $450 to $650 per individual and up to $1,000 for a couple. It is a little more expensive because it covers all the other expenses you would have to pay if your original Plan fell short.
3. Difference in Coverage
Both plans cover all of the standard coverage found in Medicare, but the Medicare Supplement plans do not hide a person’s costs for prescription drugs or some of their medical expenses. It is where Medicare Advantage stands out from its rival. Medigap plans are designed to help fill in gaps between what is paid by your original coverage and what you were expected to pay for on your own.
3. Difference in Benefits
The Medicare Supplement offers supplemental medical benefits to those enrolled in the original Medicare Plan. However, suppose you register with the Advantage Plan. In that case, you get all the same benefits from your original Plan with no limits on coverage or time limitations on hospital stays and other treatments. It also offers additional benefits such as prescription drug coverage, dental insurance, and eye care.
4. Time of Use
The Medicare Advantage Plan has to be used within the original Medicare Plan. The supplemental Plan is used with other insurance policies that help pay for medical costs. It is essential to have an additional plan to protect you from paying for any uncovered medical expenses that Medicare doesn’t cover.
5. Who Needs It
People who are enrolled with Original Medicare are not required to purchase this type of coverage, but it is highly encouraged by all insurance agencies and physicians. If you have any preexisting conditions, the supplemental Plan can provide you with the added coverage needed to pay for treatment. If you lose your job and no longer receive health benefits, the supplemental Plan is used until you can enroll in another health insurance program through a new employer or another source.
6. Enrollment Period
With the Advantage Plan, enrollment is open for only a limited period, and the coverage plan starts on the date you enroll. It will be effective on that date. The Medicare Supplement plans are available until the end of the year you first registered and can be renewed if you want to continue your coverage.It also remains effective until the end of the year you enroll.
When choosing between a Medicare Advantage Policy or a Medigap Policy, it is essential to consider what your needs and budget will allow says Medicare expert from Cleatmatch Medicare. As we have stated, the Advantage Plan is more expensive than the Medigap and offers a broader range of benefits. Nevertheless, if you want identical coverage to your Medicare coverage, then wildly few medical plans can beat the Advantage plan. It pays for things like hospitalization and prescription drugs. On the other hand, the Medigap plan is less expensive but doesn’t offer the same level of coverage.