Medicare Advantage plans vs. Medigap
Medicare Advantage plans (Part C)—These plans are an affordable, all-in-one healthcare option offered by private, Medicare-approved health insurance companies. Medicare Advantage plans combine your Medicare Parts A and B benefits in one plan and typically include Part D prescription drug coverage along with extra benefits Medicare doesn’t cover, such as vision, dental, and hearing benefits. Plan options and benefits will vary by the insurance provider and the area you live in.
If you choose a Medicare Advantage plan, you’ll still need to pay your Medicare Part B premium, and the Medicare Advantage plan may have an additional monthly plan premium—though some insurance providers offer $0 monthly premium plans. You’ll pay a copay for medical and hospital services you receive. But there’s no medical deductible to meet, and copays are usually much lower than the 20% coinsurance you’d pay with Original Medicare. Medicare Advantage plans are typically a more affordable choice than Medigap insurance plans.
Medicare Supplement Insurance (Medigap)—Like Medicare Advantage plans, Medicare Supplement Insurance is offered by private, Medicare-approved health insurance companies, and you must continue to pay your Medicare Part B premiums. Medigap plans are standardized and available in all 50 states; however, all plans may not be available in your area. Unlike Medicare Advantage plans, Medicare Supplement Insurance plans are designed to simply fill in the coverage gaps in Original Medicare, and Medigap plans do not include Part D prescription drug coverage, so an additional Part D plan needs to be purchased.
Take a look at the pros and cons