There are two options commonly offered by private insurance companies used to supplement Original Medicare. The first option is called Medicare Advantage; this is an alternative way to get Original Medicare. The second option is called a Medicare Supplement (or Medigap) insurance plans. These work with Original Medicare coverage. These plans have significant differences when it comes to benefits, costs, and how the insurance carriers implement them. It's important to understand and know the differences and options as you review Medicare additional information.
If you're trying to decide between a Medicare Advantage (Medicare Part C) plan and a (Medigap) Medicare Supplement insurance plan, or if you're unsure of the benefits each program offers, This is a quick overview/guide of these types of plans and how they compare for your reference.
There are several different types of Medicare Advantage plans (Health Maintenance Organization) HMO, (Preferred Provider Organization)PPO, (Private Fee-for-Service)PFFS, (Special Needs Plan)SNP, (Health Maintenance Organization Point-of-Service)HMO-POS, and (Medical Savings Account) MSA. For an overview of these types of plans, see my article on Medicare Part C- (Medicare Advantage Plans).
There are also several types of Medicare Supplement policies; for more details, see my article on Medicare Supplement insurance plans. Some states sell Medicare SELECT policies. The rules of these policies are somewhat different from other Medicare Supplement insurance plans. For example, with Medicare SELECT, you generally have to choose a doctor within the plan’s network.
Medicare Advantage and Medicare Supplement insurance plans don’t work together; we don’t recommend that you try to sign up for both. In fact, you cannot be sold and use a Medigap plan if you enroll in a Medicare Advantage plan.
Here’s a chart that compares these two types of insurance (both sold by private companies).
Comparison | Medicare Advantage | Medicare Supplement | ||||||||||||
Source: medicare.gov | ||||||||||||||
Eligibility |
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Costs: |
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Provider choice and availability |
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Prescription drug coverage |
| Not included. If you want this coverage, you may want to consider enrolling in a stand-alone Medicare Part D prescription drug plan. | ||||||||||||
Is the plan renewable? Do benefits change? | Benefits can change yearly. You usually remain in a plan unless you disenroll during the Annual Election Period (AEP) or Medicare Advantage Disenrollment Period. | Medicare Advantage plans can drop doctors from their networks. Medicare Advantage plans and Medicare Supplemental plans are guaranteed renewable as long as you pay the premium and were truthful on your application. There is No Annual Election Period (AEP) for Medigap plans. However, if you drop your Medigap plan, you might never get it again. | ||||||||||||
Extras? |
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For whom it works best |
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How to comparison shop | Medicare Advantage Plans are not standardized. Ten types of (Medigap) Medicare | Supplement plans are standardized in 47 states; each plan is labeled with a letter (such as Plan G). Once you decide which plan you want, you can compare different insurance carriers offering the same plan. For example, if you choose Plan G, you can look at the prices that different insurance carriers might have for a Plan G. You may also want to choose a health insurer you're already comfortable with, But that is not advisable since a Plan G is the same no matter what insurance carrier you purchase it from. |
Contact Indiana Insurance Alliance to walk thru all of your plan options and costs.
Are you tired of paying too much for your Supplement premium let us help you save money? You can change plans and carriers anytime throughout the year
Contact: Indiana Insurance Alliance
Website: www.INinsureALL.com
Phone: 765-462-6002
Email: kjones@INinsureALL.com