Medicare Supplement vs Advantage


What is a Medicare Supplement? Why should I consider one? Is there a difference between a Medicare Supplement and Medicare Advantage plan? These are common questions that we hope to shed some light on.

Difference between Original Medicare and Medicare Advantage

A Medicare Supplement, also known as Medigap, is a privately-owned insurance policy. It covers the gap between what Medicare can and cannot pay. This supplement along with original Medicare parts A & B, allows you to go to whatever doctor’s facility you would like, use any provider of your preference, and does not come with any kind of network.

Supplement plans are only good for medical: MRI, CT Scans, etc. This could include deductibles, copayments, or something like coinsurance.

Advantage Plans are similar to a Health Maintenance Organization (HMO) because they both have networks. Advantage Plans typically come with competitive premiums. However, you are restricted to go to a doctor inside of the network unless you pick a PPO plan. Furthermore, these networks can change from year to year.

Popular Medicare Supplement Plans

Medicare Supplement Plans are F and G both have a very low monthly premiums, and are the most popular.

  • Plan F covers everything that Medicare Supplements cover but is a little more per month.
  • Plan G covers everything except for the Part B deductible, which estimates to $185 per year.

If you qualify, we think Plan G ends up being a better deal for our clients because they end up paying less. The only difference is that Plan G doesn’t cover the part B deductible, which is a very small cost per year.

Supplement High Deductible Plan F

For those who cannot afford a Medicare Supplement along with Medicare Part B, there is another option, a High Deductible Plan F. This plan will not be going away with Plan F at the end of 2019.

A High Deductible Plan F is less expensive, comes with a yearly deductible, and has the same basic benefits as a Plan F. We recommend it for customers who pay a lot of out-of-pocket costs or have many doctor visits. With this plan, you mitigate the risk of a large financial burden and replace that with a smaller yearly deductible that will make things more affordable.

Supplement Plans Leaving

We want to make sure that everyone is aware that there are certain Medicare Supplement plans that are leaving in 2019. In fact, your Medicare eligibility date impacts the coverage that you qualify for. If you are eligible for Medicare before 2020, then your options will be different than those of Americans who become eligible from January 1, 2020, on. Since Congress passed the Medicare Access and CHIP Reauthorization Act (MACRA) in 2015, the plans with no deductible, like Medicare Supplement (Medigap) Plans F and C, will no longer be available.

For the beneficiaries already enrolled in Medigap Plan F or Plan C, you can rest easy knowing that you’re grandfathered into your policy. However, it’s important to understand that after 2020, you may see a rate increase if you have one of these policies.

Medicare Eligibility Before and After 2020

Plans F, C, and High-Deductible Plan F are going away for new enrollees in 2020. However, Americans who are already on Medicare prior to 2020 should be able to select or switch from these plans at any time in the future.

So, if you are eligible for Medicare Parts A and B by December 2019, then you’ll be able to enroll in one of these plans at any time in 2020

If you would like to learn more make sure to read our article. Click here for more information.

 Your Medicare questions are important to us. We have nationally licensed insurance agents ready and waiting to help you. Call our Medicare Helpline and ask any question (888) 446-9157. Get a Medicare Supplement instant quote here

Another article you might enjoy: https://www.empowerbrokerage.com/a-fresh-look-at-medicare/

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