How Is Medicare Advantage Different from Medicare Supplement?
How Is Medicare Advantage Different from Medicare Supplement?

Medicare Advantage and Medicare Supplement (or MediGap) plans haven’t always been available. Originally, Medicare only had two elements: Medicare Part A, or hospital insurance, which covered hospital visits and some other medical facility expenses; and Medicare Part B, which provided coverage for doctor visits and other specific healthcare costs. Together these elements are often referred to as ‘traditional Medicare.’
Observing the gaps in coverage that evolved due to advances in medical science, the government started building additional plan options for seniors who wanted to be prepared for these additional expenses. So what are the differences between Medicare Advantage and MediGap plans? Let’s take look at them.
What is a Medicare Advantage plan?
What is a Medicare Advantage plan?
Medicare Advantage (or Medicare Part C) was created in the late ’90s to help provide personalized care options for seniors and potentially help them save money in the face of rapidly rising medical costs. To accomplish this, the government turned to private companies for the development of plans that would meet certain criteria established by Medicare. Essentially, these criteria sought to protect seniors from companies using deceptive business practices. Before any Medicare Advantage plan can be marketed, it must receive approval from Medicare.
What does Medicare Advantage cover?
What does Medicare Advantage cover?
All Medicare Advantage plans must provide the services covered by traditional Medicare (Medicare Part A and Medicare Part B). They may, however, offer a number of additional benefits. Some of these plan benefits may include:
- Dental care coverage
- Eye care coverage
- Hearing care coverage
- Worldwide urgent care and emergency coverage
- Mail-order pharmacy program
- Wellness and fitness programs 24/7 nurse line
Costs and Cost-Sharing
Costs and Cost-Sharing
As with any other product or service, the real issue here is how much help you can afford. No matter which type of Medicare coverage you select, you are required to assist with the costs of the plan. As you figure your budget, there are two major items you need to watch:
Deductibles: your out-of-pocket costs for health care coverage (Once you reach your deductible, your plan will start to help pay for some of your health care costs.)
Premiums: your monthly contribution to participate in the benefits of your plan.
In traditional Medicare, premiums and deductibles are set amounts that tend to vary only according to the cost of care where you live. Medicare Advantage plan premiums and deductibles can fluctuate significantly, depending on the specific plan. Two other tools Medicare plans and other forms of insurance use to help manage your healthcare costs are:
Copays: the amount you pay each time you use a service
Coinsurance: the percentage youpay for your health care costs and what the plan pays. (For example, you might pay 20% of your costs, and the plan would pay the remaining 80%.).