What’s the Difference Between a Medicare Advantage Plan and a Medicare Supplement Insurance Plan?

October 24, 2023 | Tags: Medicare Understanding Medicare Advantage


 

As you research your Medicare options, you are likely seeing information for both Medicare Advantage and Medicare Supplement Insurance plans. As you sort through your options, the first question you might have is what are the differences between the two plans. 

Both plans are designed to help you get the most out of your Medicare benefits, but what’s best for you will depend on your needs

Here are the basics of each plan: 

Medicare Advantage Plans

  • Combine Medicare Parts A (hospital stays) and B (outpatient appointments and services) benefits and are sold by private insurers. 
  • Sometimes include Part D prescription drug coverage. 
  • Often include additional benefits such as hearing, dental, vision coverage and more. 
  • Typically have lower out-of-pocket costs than Original Medicare. 
  • Have a network of doctors and hospitals you must use to take advantage of your coverage. 
  • Provide coverage for emergency care when traveling outside the U.S. 

Medicare Supplement Insurance Plans

  • Are sold by private insurers to “supplement” your Original Medicare coverage. 
  • Help pay some of the out-of-pocket costs that Original Medicare doesn’t cover, such as deductibles, copays and coinsurance. 
  • Sometimes offer emergency medical care while traveling outside the U.S.
  • Give you access to any doctor that accepts Medicare without having to worry if the provider is in-network.
  • Do not cover prescription drugs and typically do not cover hearing aids, eyewear, dental or long-term care. 
  • Have a six-month enrollment window, which starts on the first day of the month after your 65th birthday, when you can enroll without being subject to medical underwriting; if you enroll later, you may be subject to a higher premium.

Enrollment Periods

When are you eligible to enroll in a Medicare Advantage or Supplement Insurance plan? For more information, watch our video outlining enrollment periods.

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