What is the difference between Medicare Supplement Insurance (Medigap) and Medicare Advantage?

Its purpose is to cover some or all of the out-of-pocket costs that beneficiaries would otherwise need to pay for services covered by Original Medicare. Unlike Original Medicare, which lacks a cap on out-of-pocket expenses, Medigap provides financial protection.

Key Points:

Coverage: Medigap supplements Original Medicare by covering costs such as deductibles, copayments, and coinsurance.

Eligibility: To buy a Medigap policy, you generally need to have both Medicare Part A (Hospital Insurance) and Part B (Medical Insurance).

Choosing Medigap: When enrolling in Medicare, you have two main options:

Original Medicare + Medigap: You can choose Original Medicare along with a Medigap policy (and a Medicare Part D prescription drug plan if you lack other prescription coverage).

Medicare Advantage: Alternatively, you can opt for a Medicare Advantage policy, but you cannot use Medigap alongside a Medicare Advantage plan. For more on Medigap, coverage and elligibility, see article here https://protect.com/insurance/auto

Differences Between Medigap and Medicare Advantage:

Annual Plan Change Opportunity:

Medigap: No annual plan change opportunity without medical underwriting (unless required by your state).

Medicare Advantage: Allows changes during the Annual Election Period and Medicare Advantage Open Enrollment Period.

Guaranteed-Issue Coverage:

Medigap: Guaranteed-issue during your Medigap open enrollment period (starting at age 65 and when enrolled in Medicare Part B).

Medicare Advantage: Varies by state and age.

Out-of-Pocket Costs:

Medigap: Varies by plan; comprehensive plans may have lower costs (excluding prescription expenses).

Medicare Advantage: Out-of-pocket costs can reach up to $8,850 for in-network benefits (average is less than $5,000, excluding prescriptions).

Premiums:

Medigap: Varies by plan and location; some plans have no premium beyond the cost of Part B.

Medicare Advantage: Average premium in 2023 was about $18/month (in addition to Part B costs).

Remember, Medigap plans cover any providers who accept Medicare nationwide, except for Medicare SELECT plans. These SELECT plans create their own provider networks, which can be local or national. Whether you choose Medigap or Medicare Advantage, understanding your options ensures you make informed decisions about your healthcare coverageCompare Top Medicare Providers And Save With Protect.com

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