Medicare Supplement vs. Medicare Advantage Plan, which offers better coverage?
A Medicare Supplement Plan works with Medicare to pay the out of pocket costs that Medicare does not pay for. When you have a Medicare Supplement Plan, you will continue to use your Medicare red, white, and blue card, as well as your Medicare Supplement Card.
A Medicare Advantage Plan works in replace of Medicare. Medicare pays a private insurance company to insure you, with the requirement that the benefits are at least as good as what Medicare offers. If you choose a Medicare Advantage Plan, you can put away your Medicare red, white, and blue card because you will only be required to present your Medicare Advantage Plan card to use the insurance.
So which is better?
Good news, there is no wrong answer, they both are good, and both probably offer better coverage than you are used too. Below are the good and the bad for each type of insurance, I hope this helps:
Flexibility- choice of Doctor and/or Hospital
Predictability- very little out of pocket expense
Pays all hospital bills
You and your Doctor decide your care
Easy to shop and compare the different prices
No referrals are required, no HMO or PPO
Travels with you, same coverage all over the US
An additional Monthly Premium ($75-$180)
No dental or vision coverage
Monthly premium increases every year
No prescription drug coverage, you will need Part D
In summary, a Medicare Supplement Plan is going to cost an additional monthly premium, but it provides coverage that allows you to choose your own Healthcare Providers, and it is easy to budget because as long as you pay the monthly premium, you will rarely get a bill.
Medicare Advantage Plan
Very low monthly premium, sometimes $0.00
Insurance Company helps manage your care
Some dental and/or vision
Includes prescription drug coverage
High out of pocket costs up to $3,500 to $7,500
Doctor / Hospital Network: HMO or PPO
Annual Contracts, can only change 10/15-12/07
Coverage is limited to your County
Insurance Company decides your care
In summary, a Medicare Advantage Plan operates like group health insurance that most of us have had our whole life, and has a low monthly premium. However, if you are retiring and your income is being reduced, it may be more difficult to have health insurance that is impossible to budget for because you do not know how much you will use the Plan each year.
Candid MedicareBob™: I assist roughly 100 people per month with choosing which Medicare Coverage is the best for them, and 70% of the time, the choice is a Medicare Supplement Plan. This does not mean that I do not like Medicare Advantage Plans, to me it really comes down to the pricing that is available for the Medicare Supplement Plans in your area. If a Medicare Supplement Plan F, G, or Plan N is $100 or less per month, than a Medicare Supplement makes a lot of sense for most people. This being said, I do have clients that cannot afford a Medicare Supplement, this is when I assist them in choosing the right Medicare Advantage Plan for them. As I mentioned previously, both Medicare Supplement Insurance and Medicare Advantage Plans typically offer better insurance than you have had while you were working.
You should know: The only time that you are guaranteed approval for any Medicare Supplement Plan is when you first turn 65 years old, or within 6 months of when you start Medicare Part B.
How do I, a licensed insurance agent/broker that sells Medicare Supplements and/or Medicare Advantage Plans make money?
This is a fair question, and I am happy to share this information with you. My services; Medicare education, telephonic enrollment, and customer service, has no additional cost to you. I get paid by the insurance company, not by you.
Medicare insurance question? What quotes from 20+ Medicare Supplement Companies? What a chart of the available Medicare Advantage Plans in you County? Call me, Robert W. Bache aka MedicareBob™: 1-800-525-0299.
Robert W. Bache aka “MedicareBob™”
President / Producer
Senior Healthcare Direct
Direct Toll Free: 1-800-525-0299
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