Senior Financial GroupSenior Financial Group
Knoxville Office: (865) 777-0153 – Toll Free: (800) 677-0153
  • Home
  • About
    • Meet the SFG Medicare Team
    • Careers
  • Medicare Basics
    • Medicare Options
    • Health Care Reform
    • Enroll
    • Medicare Videos
  • Services
    • Medicare
    • Health & Life Insurance
    • Prescription Drug Plans
    • Dental, Vision & Hearing
    • Additional Products & Services
  • Blog
  • Events
  • Contact

Home » Blog » Medicare » Choosing your Medicare Path: Medicare Advantage Plans vs. Medicare Supplement Plans

Choosing your Medicare Path: Medicare Advantage Plans vs. Medicare Supplement Plans

July 31, 2019|Medicare3

MedicareContrary to what most people new to Medicare think, Original Medicare does not cover everything.  Once you meet your Part A and Part B deductibles, Medicare covers 80% and you must pay out-of-pocket or get insurance to cover the remaining 20%.  Medicare Supplement plans, also known as Medigap plans, and Medicare Advantage plans are two options to ensure all your healthcare needs are covered.

That said, when considering which plan is best for you, there are several determining factors to recognize: How much does each plan cost? What do they cover? Are they reliable? Comparing the advantages and disadvantages of both options is vital in identifying which policy will ultimately keep you happy and healthy.

Advantages of Medicare Supplement Plans

Each Medicare Supplement is standardized by Medicare to provide the same set of benefits. There are 10 different Medicare Supplement plans to choose from, covering all or a select few benefits depending on the plan. Regardless of which plan you choose, you will have access to coverage in all 50 states, and several plans will even provide some coverage for foreign travel emergencies. You will also be able to choose from any doctor and hospital that participates in Medicare, see a specialist without first receiving a referral, and enroll in a plan without worrying about your doctor being dropped or your plan being cancelled or changed.  If you enroll into a Medicare Supplement plan during your one-time open enrollment period, there are no health questions required for approval.

Disadvantages of Medicare Supplement Plans

As shown in the graphic below (Figure 1.0), Medicare Supplement plans lack one major healthcare necessity: prescription drug coverage. In addition to enrolling in Medicare Parts A and B and whichever Medicare Supplement you may choose; Medicare Part D must be purchased in order to cover prescription medication.  Because Medicare Supplements offer you the most flexibility, they tend to have higher premiums than Medicare Advantage plans and premiums can go up annually.

Comparison of Medicare Advantage and Medicare Supplement

Figure 1.0


Advantages of Medicare Advantage Plans

Medicare Advantage plans are HMO and PPO plans in which you agree to use the plan’s network of providers, hospitals, clinics and pharmacies to get your care.  You have a wide variety of policies and cost options with Medicare Advantage, an average $40 a month in premiums and various out-of-pocket maximums.  Advantage plans cover everything Medicare Parts A and B cover and most have a prescription drug plan built in. Different Medicare Advantage plans also have extra benefits such as coverage for vision, dental, and/or hearing needs, unlike basic Medicare.

Disadvantages of Medicare Advantage Plans

The biggest disadvantage of Medicare Advantage is its lack of stability. Your plan can change yearly, your doctor can be dropped, and there is no way to add more supplemental insurance to your plan if these issues do occur. There is also a lack of variety in which doctors you can visit, and you must live in the plan’s service area. With a Medicare Advantage Preferred Provider Organization (PPO) plan, you can get health care from any provider or hospital, but it will cost you extra when they are out-of-network. With Medicare Advantage Health Maintenance Organizations (HMOs) you can only see providers in network (except in emergency situations) and cannot see specialists without referrals from a primary care doctor.

At their core, Medicare Supplement plans are more of an extension of Medicare Parts A and B, while Medicare Advantage is more of an all-encompassing plan. Both plans can help you to obtain coverage that Medicare Parts A and B alone cannot provide.

A Medicare Advocate Can Help

Are you still unsure which path is right for you?  It’s important to compare the coverage, costs, and benefits of each plan against your personal situation.  Our advisors can save you time by researching which plans your doctors take and if your medications are covered.  They can quickly compare plan costs, estimate your savings and help you with enrollment.  Our advisors will be there before, during and after you enroll to ensure you fully understand your options and coverage.

For more information on these plans, see the document attached here, and be sure to contact one of our advisors to help you decide on the best Medicare coverage for you.

 

Senior Financial Group does Medicare differently.

Sources:  Medicare.gov; Kaiser Family Foundation

August 6, 2019 Susan Chapin

About the author

Susan Chapin
Susan Chapin

I am the Marketing & Communications Manager and chief blogger at Senior Financial Group in Knoxville, TN. If you have any Medicare insurance related questions you can post them below. If I can't answer your question, I will have one of our licensed insurance agents to follow up with you immediately. Thanks for reading!

Related Posts

  • It’s Time for Medicare’s Annual Enrollment Period
    It’s Time for Medicare’s Annual Enrollment PeriodOctober 12, 2020
  • Caring for your Mental Health in the Time of COVID-19
    Caring for your Mental Health in the Time of COVID-19July 16, 2020
  • Alzheimer’s and Medicare: What is Covered and What Is Not
    Alzheimer’s and Medicare: What is Covered and What Is NotJuly 1, 2020

Popular Posts

  • Choosing your Medicare Path: Medicare Advantage Plans vs. Medicare Supplement Plans
    Choosing your Medicare Path: Medicare Advantage Plans vs. Medicare Supplement PlansJuly 31, 2019
  • The Medicare Maze
    The Medicare MazeMarch 12, 2014
  • Land or Sea – A New Senior Living Option
    Land or Sea – A New Senior Living OptionJuly 7, 2017

3 Responses to Choosing your Medicare Path: Medicare Advantage Plans vs. Medicare Supplement Plans

  • Avatar
    Lindsey Goff August 31, 2019

    You do NOT have to purchase a prescription plan with a supplement plan. The insurance companies want you to believe that, so they make money off that, too. I have one that charges me nothing and handles all my prescription needs. Also, I feel a supplement plan should include things that an Advantage plan has, such as transportation, dental, vision, etc., because we have to pay a good amount each month in addition to the cost of Medicare, while Advantage plans, many of them, don’t charge any additional premium for these benefits.

    Reply
    • Susan Chapin
      Susan Chapin September 12, 2019

      Thank you for your comments Lindsey. All Medicare Supplements vary on the services they cover and what they charge. Most supplements do not include prescription drug coverage. It is great that you found a plan that works for you. Our goal is to help our clients find the perfect plan for their unique situation.

      Reply
  • Avatar
    NotYourSocialSecurity November 5, 2019

    Medicare part D covers prescription drugs which provides medication from private and branded companies. If you’re looking for Supplement plan should include things that an Advantage plan has, such as transportation, dental, vision, etc or mainly advantages that you can cover under Part B.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Categories

  • Health & Wellness
  • Insurance
  • Medicaid
  • Medicare
  • Medicare Seminars
  • News
  • Our Team
  • Prescription Drugs
  • Retirement
  • Senior Living
  • Social Security

Recent Posts

  • It’s Time for Medicare’s Annual Enrollment Period
  • A flu shot is the best defense against a COVID/Flu ‘twindemic’
  • Celebrate National Wellness Month
  • Heat Awareness and Safety for Seniors
  • Caring for your Mental Health in the Time of COVID-19

Links

Medicare.gov
Social Security
National Council on Aging
TN Commission on Aging & Disability
Summit Medical
Privacy Policy

News

  • It’s Time for Medicare’s Annual Enrollment Period
  • A flu shot is the best defense against a COVID/Flu ‘twindemic’
  • Celebrate National Wellness Month
  • Heat Awareness and Safety for Seniors
  • Caring for your Mental Health in the Time of COVID-19
Knox Chamber Logo

Contact Us

865-777-0153

800-677-0153

865-777-2299

info*sfgmedicare.com

10201 Parkside Drive

Knoxville, TN 37922

Follow Us

Facebook twitter linkedin
Copyright © 2018 Senior Financial Group. All Rights Reserved | Powered by Epic Nine