Which should you get, a Medicare Advantage Plan or a Medicare Supplement Plan (aka Medigap)?
The answer totally depends on your situation as there are advantages and disadvantages to each.
As I see it the advangages to a Medicare Advantage Plan is primarily that of lower cost. There are even some Medicare Advantage Plans that do not have a monthly premium. How can the insurance companies offer a no premium plan? Easy, Medicare pays the company a set amount to administer your health care. The fee they pay is enough for them to cover your healthcare costs plus allow them to make a profit.
A caveat however on Medicare Advantage. With most plans you are going to be limited to the doctors you can see and to the hospitals that participate in their plan. Most Medicare Advantage Plans are HMO's or PPO's, and each have their network of doctors and hospitals.
Since a Medicare Advantage Plan is usually for a specific geographical area, if you travel a lot it might not be for you. So make sure you fully understand and are able to live with all the restrictions before signing on to a Medicare Advantage Plan.
A Medicare Supplement Plan (aka Medigap Plan) is just what it says, it supplements Medicare. Usually Medicare Part B will pay 80% of the costs for most services, so a supplement plan will cover the remaining 20%. Usually a Medicare Supplement Plan will cost more than a Medicare Advantage Plan but it does have it's advantages.
Those advantages are that you are not limited to a network of doctors or hospitals, and also you are not limited to a geographical area. If a doctor or a hospital participates in Medicare, then you can see them and be covered by your Medicare Supplement Policy.
Like everything else, it just depends on your needs.
The answer totally depends on your situation as there are advantages and disadvantages to each.
As I see it the advangages to a Medicare Advantage Plan is primarily that of lower cost. There are even some Medicare Advantage Plans that do not have a monthly premium. How can the insurance companies offer a no premium plan? Easy, Medicare pays the company a set amount to administer your health care. The fee they pay is enough for them to cover your healthcare costs plus allow them to make a profit.
A caveat however on Medicare Advantage. With most plans you are going to be limited to the doctors you can see and to the hospitals that participate in their plan. Most Medicare Advantage Plans are HMO's or PPO's, and each have their network of doctors and hospitals.
Since a Medicare Advantage Plan is usually for a specific geographical area, if you travel a lot it might not be for you. So make sure you fully understand and are able to live with all the restrictions before signing on to a Medicare Advantage Plan.
A Medicare Supplement Plan (aka Medigap Plan) is just what it says, it supplements Medicare. Usually Medicare Part B will pay 80% of the costs for most services, so a supplement plan will cover the remaining 20%. Usually a Medicare Supplement Plan will cost more than a Medicare Advantage Plan but it does have it's advantages.
Those advantages are that you are not limited to a network of doctors or hospitals, and also you are not limited to a geographical area. If a doctor or a hospital participates in Medicare, then you can see them and be covered by your Medicare Supplement Policy.
Like everything else, it just depends on your needs.