While Original Medicare covers many costs of Medicare-approved services, it doesn’t cover everything. As a result, many Medicare beneficiaries enroll in two types of Medicare plans to cover the gaps left behind by Original Medicare. The two commonly used options to replace or supplement Original Medicare are Medicare Advantage (Medicare Part C) and Medicare Supplement (Medigap).
Medicare Part C is an alternative way to getting all of the benefits offered by Medicare Part A and Part B, while Medicare Supplements work alongside the Original Medicare plan. These Medicare plans have huge differences, so it is vital to understand these differences as you review your options.
Key Differences
- Cost
- A significant difference between both plans is the cost. Generally, Medigap has a higher monthly premium than Medicare Advantage. However, each Medigap and Medicare Advantage plan varies in coverage, so some plans may have more out-of-pocket costs than others. You can save more by selecting a plan that is more suitable for your specific lifestyle and conditions.
- Choice of Doctors
- Another key difference between Medicare Advantage and Medigap is the choice of doctors they offer. Medigap allows you to use any United States hospital or doctor that accepts Medicare. Some Medigap plans also cover foreign emergency medical care. In contrast, Medicare Part C plans have select networks that beneficiaries must use. Most cover little or none of the costs when using out-of-network providers.
- Lifestyle Factors
- Dual residences, frequent travel, and having doctors whom you would like to treat you are some of the factors that can help you make the right Medicare choice. For frequent travelers, choosing a Medicare Supplement plan that (covers emergency care in foreign countries) works along with Original Medicare may be a good bet. Moreover, those that spend part of the year in different geographical areas might be better off with Medicare Supplement plans that cover a wide range of networks.
- Your Health
- Medicare beneficiaries with chronic diseases or serious health conditions should thoroughly research the choices available. A Medicare Part C plan may be more suitable for you if it has an out-of-pocket maximum that protects you from massive bills. Original Medicare plus Medicare Supplement plans usually give you more choice in terms of where you receive your care.
Which Is the Better Option?
Medicare Advantage plans may be well-suited for those in good health and don’t expect to have huge medical expenses. It can also be a good option for those who want additional coverage like prescription drug coverage and routine dental care.
However, if you have health issues and lots of medical expenses, you may be well suited for a Medicare Supplement plan. While Medicare Supplement premiums are usually higher, they typically have lower out-of-pocket costs.
If you have more questions about which type of plan works better for you, don’t hesitate to contact Cornerstone Senior Advisors to speak with an experienced Medicare agent.