Medicare Advantage vs. Medicare Supplement (Medigap) insurance plans
Medicare Supplement insurance plans work with Original Medicare, Part A and Part B, and may help pay for certain costs that Original Medicare doesn’t cover. These plans don’t provide stand-alone coverage; you need to remain enrolled in Part A and Part B for your hospital and medical coverage. If you need prescription drug coverage, you’d need to enroll in a stand-alone Medicare Prescription Drug Plan.
When you buy a Medicare Supplement insurance plan, you are still enrolled in Original Medicare, Part A and Part B. Medicare pays for your health-care bills primarily, while the Medigap plan simply covers certain cost-sharing expenses required by Medicare, such as copayments or deductibles. In addition, Medigap insurance plans may help with other costs that Original Medicare doesn’t cover, such as Medicare Part B excess charges or emergency medical coverage when you’re traveling outside of the country. Keep in mind that Medicare Supplement insurance plans can only be used to pay for Original Medicare costs; they can’t be used with Medicare Advantage plans. [Read more…]