Medicare Advantage vs. Medicare Supplement: Which Plan Is Right for Me?

Medicare Advantage vs. Medicare Supplement

Navigating the Medicare market can be extremely confusing. There are many different plans, benefits and costs to choose from that can easily become overwhelming, making it hard to clearly understand what your options are. To bring it back to basics, there are two main plan options in Medicare: Medicare Advantage and Medicare Supplement plans. While both types of plans will coordinate with Medicare to deliver your benefits, they couldn’t be more different. In this section, we will simplify both plans so you can clearly understand your options and make a decision on which plan is right for you.

Medicare Supplement vs. Medicare Advantage: Cost

One difference between Medicare Supplement and Medicare Advantage plans comes down to when and how you pay for coverage. In a Medicare Supplement plan, you pay a monthly premium for coverage followed by little to no cost when you use services. On the other hand, with Medicare Advantage plans, you pay little to nothing monthly, but then you pay for covered services as you use them. In order to explain the difference between the two at their core, let’s look a the following analogy: 

Picture this— You are at a carnival where there are two ways to pay for attractions. You can pay a larger admission fee at the gate but then ride any ride, play any game and eat or drink anything you want at little to no additional cost. The other option is you pay no admission fee but you have to pay for every individual ride, game, food item and beverage. 

That is exactly how Medicare Supplement and Medicare Advantage plans work.  Medicare Supplement  coverage is paid by larger monthly premiums. Then, depending on which specific Medicare Supplement plan you choose, you may have a small deductible or copay, but overall, you’re exchanging a higher premium for lower medical costs. Medicare Advantage coverage is paid by the copays, coinsurance, deductibles and maximum out-of-pocket paid as you use services and, sometimes, a smaller monthly fee. This can make catastrophic events costlier than if you had a Medicare Supplement plan, but preventative care could be more affordable with a Medicare Advantage plan in comparison. 

Medicare Supplement vs. Medicare Advantage: Benefits

The second difference to consider when choosing between a Medicare Supplement and Medicare Advantage plan is which benefits are covered. Depending on which option you choose, you may need to enroll in additional plans to guarantee yourself the coverage you need. 

Medicare Supplement plans coordinate with  Original Medicare Part A and Part B by covering what Medicare doesn’t. Original Medicare does not cover cost sharing, like copays, coinsurance and deductibles, or Part B excess charges and emergencies during foreign travel. Your Medicare Supplement plan will step in to cover cost sharing and, depending on the type of Medicare Supplement plan you choose, Part B excess charges and emergencies during foreign travel as well. This is why Medicare Supplement plans can also be referred to as “Medigap” plans: they “fill the gaps” left by Original Medicare. However, Medicare Supplements do not cover prescription drugs, long-term care, home health care, dental, vision or hearing. You would need to purchase additional policies in order to cover those benefits. 

Medicare Advantage plans, however, are basically an alternative to Original Medicare. These plans cover Medicare Parts A, B and D, as well as additional benefits not found in Medicare Supplements including dental, vision, hearing and health health care. Medicare Advantage plans are considered “all-in-one” plans because they combine many of your benefits. This prevents the need for you to enroll in more than one policy. However, you would still need to maintain your Original Medicare coverage. 

Which Plan Is Right for Me?

Ultimately, Medicare Supplement plans may be ideal if you prefer to pay a higher premium for lower medical bills, want to enjoy more freedom and flexibility, and can afford to do so. Depending on which Medicare Supplement plan you choose, you likely won’t have to worry about paying all of the extra costs associated with each medical procedure, test, or doctor visit.  Medicare Supplement plans don’t have doctor’s networks, so you aren’t restricted to certain doctors - you can see whoever you want.  Finally, you are able to travel inside or outside of the country, because your Medicare Supplement plan will still provide coverage.

If you choose a Medicare Supplement plan, you may need to purchase a standalone Medicare Part D plan to cover your prescription drugs, as well as a Dental, Vision, and Hearing policy. 

On the other hand, a Medicare Advantage plan is a great option for many people. Medicare Advantage plans help beneficiaries avoid monthly premiums that could cause immediate financial hardship.You can also get more benefits covered within an “all-in-one” plan, and you don’t have to worry about bundling with other plans to get the coverage you need.. While there are networks mandating which doctors you can or cannot see on Medicare Advantage plans, you have a choice between a PPO or an HMO plan, so you can adjust your flexibility as you need. 

Eversurance Can Help

Ultimately, choosing between a Medicare Supplement and Medicare Advantage plan is an important decision for your health coverage. Let Eversurance help make the process simple and easy. Our advisors will take the time to walk you through your plan options so you can choose a plan that is best for your plan needs. Give us a call, and one of our advisors will be happy to assist you. 

Call 1-833-728-0072 or compare plans online.