Medicare Supplement Plan vs. Medicare Advantage Plan

Medicare supplement insurance, or Medigap, the coverage you can apply to Parts A and B of Traditional Medicare. The Medicare Advantage (Part C) is an alternative to Parts A and B of Traditional Medicare. It’s a different way to take advantage of the Medicare benefits.

Even though Traditional Medicare (Part A and Part B) covers several healthcare costs, it does not cover everything. Even with covered healthcare facilities, patients are often responsible for any copayments and deductibles that can easily be added up.

Furthermore, Medicare Part A and Part B also do not cover other benefits, such as routine vision and dental services, prescription medications, or emergency insurance coverage outside of the country. When all you have is Traditional Medicare, you’ll have to pay out-of-pocket for those expenses. In addition, Traditional Medicare has no maximum out-of-pocket limit on how much you pay for those expenses.

Two widely used options are to substitute or complement Traditional Medicare. An alternate way to Traditional Medicare is a Medicare Advantage Plan. The other alternative is to get a Medicare Supplement Plan (or Medigap) to operate alongside your Traditional Medicare coverage.

These programs have significant variations in terms of costs, rewards, and how they operate. Comprehension of these two healthcare options is critical when you review your Medicare coverage options.

What is a Medicare Supplement Plan?

Medicare Supplement Insurance Plans operate with Traditional Medicare, Part A, and Part B, which can help pay for any expenses not covered by Original Medicare.

Such policies don’t offer stand-alone coverage; for your hospital and medical services, you will stay enrolled in Part A and Part B.

You will need to participate in a stand-alone Medicare Prescription Drug Plan if you need prescription drug coverage.


Coverage is identical across each contract letter, ensuring you can receive the same essential Medicare Supplement coverage benefits under the same letter category, regardless of which insurance provider you purchase from.

Medicare policies cover out-of-pocket expenses that Original Medicare does not cover, such as copayments, coinsurance and deductibles. Some plans that help pay for other benefits that Original Medicare doesn’t provide, such as outside country emergency health coverage or the first three blood pints.

Depending on the package, Medicare Supplement Plans help offset out-of-pocket healthcare expenses that Initial Medicare (Part A and Part B) does not compensate, such as deductibles, copayments, coinsurance and overcharges.

With a Medicare Supplement Plan, you can help reduce the unexpected out-of-pocket healthcare expenses that you will have to pay for when a health condition occurs.

What is Medicare Advantage Plan?

Medicare Advantage Plans are an option to Medicare. First, if you are eligible for a Medicare Benefit Package, you are already in the Medicare System.

However, instead of using the federally run scheme, you can receive your Medicare benefits from the Medicare Advantage plan, and the Medicare Advantage plan replaces the initial Medicare coverage.


As already mentioned, Medicare Advantage plans give you the ability to receive insurance coverage outside Original Medicare. This can include daily vision and wellbeing services for the dental, hearing and safety. Under Original Medicare, you will usually pay out of pocket for these programs, unless you had other benefits.

Another advantage to Medicare Part C is that many of these programs do provide prescription drug coverage under Medicare Part D as part of the coverage package. Often known as the Medicare Advantage Prescription Drug Plans, these programs provide you with the ease of handling all of your Medicare benefits in a single box.

If you enroll in a prescription drug program for Medicare Benefit, you do not need to participate in an extra Medicare Prescription Drug Program. Indeed, if you are enrolled in a Medicare Advantage plan that includes prescription coverage and also enrolls in a stand-alone Medicare Prescription Drug Plan, your Medicare Advantage plan will automatically disenroll you.


Insurance policies for Medicare Advantage and Medicare Supplement do not fit together; we do not suggest that you seek to sign up for both. In reality, if you join in a Medicare Advantage program, you can’t be sold to use a Medigap program.

Here is a chart that shows their differences for you to easily understand both plans.

Medicare Supplement Plan

Medicare Advantage Plan

You can pick your physicians and hospitals as long as they support patients with Medicare.

The program network can allow you to use doctors and hospitals.

Without referrals, you may see specialists.

You may need references and may need to use a specialist network.

No network restrictions. You may use it across the United States and abroad.

You may have network restrictions. Emergency care is covered for travel in US and sometimes abroad.

After you turn 65 and enter Medicare Part B, you can apply to purchase another Medicare supplement package at any time.

There are different times of the year when you can sign or move to another Medicare benefit package.

Prescription drugs are not covered.

Prescriptions drugs are included with most plans.

Out – of – pocket costs are limited.

You pay a low or $0 monthly plan in addition to your Plan B premium.


This comprehensive checklist is the beginner guide to getting started with Medicare, the right way.

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