Medicare Advantage vs. Medicare Supplement 

Medicare Supplement insurance plans work with Original Medicare, Part A and Part B, and may help pay for certain costs that Original Medicare doesn’t cover. These plans don’t provide stand-alone coverage; you need to remain enrolled in Part A and Part B for your hospital and medical coverage. If you need prescription drug coverage, you’d need to enroll in a stand-alone Medicare Prescription Drug Plan.

When you buy a Medicare Supplement insurance plan, you are still enrolled in Original Medicare, Part A and Part B. Medicare pays for your health-care bills primarily, while the Medigap plan simply covers certain cost-sharing expenses required by Medicare, such as copayments or deductibles. In addition, Medigap insurance plans may help with other costs that Original Medicare doesn’t cover, such as Medicare Part B excess charges or emergency medical coverage when you’re traveling outside of the country. Keep in mind that Medicare Supplement insurance plans can only be used to pay for Original Medicare costs; they can’t be used with Medicare Advantage plans.

In contrast, Medicare Advantage plans are an alternative to Original Medicare. If you enroll in a Medicare Advantage plan, you’re still in the Medicare program. However, you’ll get your Medicare benefits through your Medicare Advantage plan, instead of through the federally administered program, and the Medicare Advantage plan replaces your Original Medicare coverage.

To enroll in a Medicare Advantage plan, you must:

• Have Original Medicare, Part A and Part B.
• Live in the service area of the Medicare Advantage plan you’re considering.
• Not have end-stage renal disease (with some exceptions).

Medicare Advantage plans must provide the same level of coverage as Original Medicare, with the exception of hospice care (which is still covered by Part A). Some plans may also cover additional benefits that Original Medicare doesn’t cover, such as routine vision and/or dental, health wellness programs, and prescription drugs.