There are always several different options when choosing a Medicare plan. In Las Vegas, we get a lot of questions about the right Medicare coverage for each person. Is it an Original Medicare plan with a Medigap policy or a Medicare Advantage plan? Too many options can make it even harder to choose. You might even have friends who swear by each one! To understand which one is best for you, it’s important to first understand the differences.
What is Medigap?
Last week on our blog we provided an indepth explanation of Medigap, Medicare Supplemental Insurance Explained. In case you missed it, Medical Supplemental Insurance, called Medigap, is private insurance designed to supplement your Original Medicare plan. It can help with copays, deductibles and coinsurance not covered by Medicare. With Medigap you’ll pay a monthly premium, in addition to your current Medicare premiums. Medigap helps fill in the gaps of your Original Medicare insurance. To purchase a Medigap policy, you must have Medicare Plan A and Plan B.
What is Medicare Advantage (Part C)?
Medicare Advantage or Part C of Medicare, on the other hand, is an alternative to Original Medicare. It is also sold by private insurance companies, but each company’s plan is approved by Medicare. Medicare pays these companies to cover you. Medicare Advantage plans may have a monthly premium and cover everything that Original Medicare covers. In addition to these benefits, Medicare Advantage plans can also include extras benefits like prescription, dental, vision and hearing coverage. Medicare Advantage is designed to have all your benefits in one cohesive package.
Medigap vs Medicare Advantage – what’s the difference?
Medicare Advantage (Part C) operates more like traditional medical insurance. There are several types of Medicare Advantage plans, including HMOs and PPOs. With Medicare Advantage, there are more restrictions involved. You must pick a provider within your network, and costs are much higher if you choose to go outside your network. Medigap, on the other hand, is accepted by any doctor or hospital that takes Medicare across the country. All Medicare Advantage plans, like traditional insurance, have annual out-of-pocket limits. Often times they’re high, but can protect you from paying excessive medical costs.
Medicare Advantage can also differ in name and benefit coverage from state to state and county to county. If you live in a rural area it may be hard to find a Medicare Advantage plan that works for you. Medigap plans are labeled by letter, so the same letters cover the same benefits no matter what company sells you the insurance. But Medigap prices can change depending on age and where you live. Since they’re sold by private companies, it pays to shop around for the best price.
Can I use Medigap and Medicare Advantage together?
Medicare Advantage and Medigap plans cannot be used together. Medigap does not cover copays, deductibles, or coinsurance for Medicare Advantage plans. In fact, it is against Medicare regulation for you to carry both Medicare Advantage and Medigap at the same time.
Which plan is best for me?
There’s no “one size fits all” health insurance plan. What works for your neighbor might not work for you. Even with all this information, it can still be hard to decide between Medigap vs Medicare Advantage and determine the best medical coverage for your lifestyle, needs and eligibility on your own.
That’s why Accurate Choice Insurance is here to help. We are experts in our field and are here to help you make an educated decision. If you have questions or would like to learn more about your Medigap and Medicare Advantage coverage options, contact us at info@accuratechoiceins.com or 702-425-4100!