Verna Knight, MBA

Licensed Insurance Agent

Medicare Advantage Vs Medicare Supplement What Is A Good Fit for You?

Are you planning to set changes with your Medicare coverage but still undecided which one is a good fit for you? Well, we got your back, let’s find out!

What is Medicare Advantage?

Medicare Advantage, also known as Medicare Part C, is a complete replacement for traditional Medicare. Private insurance companies provide Medicare Advantage plans that are approved by Medicare. These plans combine parts A (hospital coverage) and B (doctor and outpatient services), as well as Part D prescription drug coverage, into a single comprehensive plan. More than 40% of Medicare beneficiaries prefer to receive their coverage through a Medicare Advantage plan rather than through traditional Medicare.

What does it cover?How much does it cost?Who are eligible?
Medicare Advantage plans are required by the federal government to cover everything that Medicare Parts A and B cover. Plans may charge more or refuse to cover doctors or facilities outside the plan’s network. Some plans include extra benefits for people with chronic illnesses, such as meal delivery and wheelchair ramps.In 2022, the average monthly premium for Medicare Advantage enrollees is $19. For services covered by parts A and B, some plans have an annual maximum out-of-pocket spending limit. Prescription drugs will also require copayments or coinsurance.To join a Medicare Advantage plan, you must be enrolled in Medicare Parts A and B. Regardless of your medical needs, the plan cannot deny your application. Some plans concentrate on chronic conditions such as diabetes, heart failure, or kidney failure.

What is Medicare Supplement Plan?

If you are nearing the end of your Medicare eligibility period, you may be wondering, “What is a Medicare Supplement plan? ”. Medicare Supplement policies are optional policies that can be purchased to fill the gaps left by Original Medicare. These plans are provided by private insurance companies and, in some cases, can help you save money in the long run by avoiding potentially exorbitant medical expenses.

What does it cover?How much does it cost?Who are eligible?
What your Medicare Supplement Insurance plan covers is determined by the plan you select. In most states, Medigap policies will cover Part A hospitalization costs for up to a year. Plans pay for at least a portion of your Medicare Part B copayments and coinsurance.Depending on your plan, monthly premiums for Medicare Supplement (Medigap) plans can range from $50 to $400 or more. Furthermore, these Medigap plan costs vary by beneficiary because they are influenced by a variety of factors.The time of enrollment determines your eligibility for Medicare Supplement Insurance. You must be 65 or older (in some states, some Plans are offered to those under 65 who are on disability). At the time of application, you must live in the state where the Supplement Plan is available.

Medicare Advantage vs Medicare Supplement Plan

When you purchase a Medicare Supplement insurance plan, you remain enrolled in Original Medicare, Parts A and B. Medicare pays for the majority of your health-care bills, whereas the Medigap plan only covers certain cost-sharing expenses mandated by Medicare, such as copayments or deductibles. Furthermore, Medigap insurance plans may assist with costs that Original Medicare does not cover, such as Medicare Part B excess charges or emergency medical coverage while traveling outside of the country. Remember that Medicare Supplement insurance plans can only be used to pay for Original Medicare costs; they cannot be used in conjunction with Medicare Advantage plans. Medicare Supplement insurance plans work in conjunction with Original Medicare, Parts A and B, and may assist in covering costs that Original Medicare does not cover. These plans do not provide stand-alone coverage; you must continue to be enrolled in Parts A and B for hospital and medical coverage. If you require prescription drug coverage, you must enroll in a Medicare Prescription Drug Plan. Also, Medicare Advantage plans are an alternative to Original Medicare. You are still enrolled in the Medicare program if you enroll in a Medicare Advantage plan. However, instead of the federally administered program, you will receive your Medicare benefits through your Medicare Advantage plan, and the Medicare Advantage plan will replace your Original Medicare coverage. 

Planning to change your Medicare coverage?

Knight and Day Solutions got your back with a free consultation! 

Or call: 423-316-7207