The Differences in Medicare Supplements & Medicare Advantage Plans

To truly understand the difference between a Medicare Supplement and a Medicare Advantage plan we recommend you to speak with a licensed insurance agent. A general guide is that a Medicare Supplement is just that. It’s an individual insurance policy you buy from a private carrier to help supplement the coverage provided by Original Medicare Parts A & B. Generally, Original Medicare covers approximately 80% of your medical costs. A Medicare Supplement is designed to help cover the remaining 20% of those costs, such as deductibles, co-pays and co-insurance. Medicare Supplement plans can also be referred to as Medigap policies. Medicare Supplement plans provide health coverage only; therefore, you would need to purchase an additional prescription drug plan to compliment the health coverage.

Medicare Advantage plans replace Original Medicare altogether (Parts A & B) and through a private insurance company, provide comparable coverage to Original Medicare with some added coverages (like dental or vision). Medicare Advantage plans sometimes include prescription drug coverage and basic dental, vision, and hearing coverage within one plan. In a Medicare Advantage plan, you are restricted to a network of doctors and hospitals.

Medicare Advantage plans generally offer lower premiums, but they may not provide as much coverage, so they can lead to higher out of pocket expenses if you have to use the plan.
That being said, it is important to weigh both options with the help of a trusted agent to determine which plan may work best for you. It isn’t a one size fits all product.

Our firm is not affiliated with the U.S. government or the federal Medicare program. You may be contacted by a licensed insurance agent.

Medicare Advantage Plans are insured or covered by a Medicare Advantage organization with a Medicare contract and/or a Medicare-approved Part D sponsor. Enrollment in the plan depends on the plan’s contract renewal with Medicare. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options. Availability of benefits and plans varies by carrier and location. Deductibles, copays and coinsurance may apply.

Investment advisory services made available through AE Wealth Management, LLC (AEWM). AEWM and Bradshaw and Weil Insurance and Financial planning are not affiliated companies. Insurance products are offered through the insurance business Bradshaw and Weil Insurance and Financial Planning. Bradshaw and Weil Insurance and Financial Planning is also an Investment Advisory practice that offers products and services through AE Wealth Management, LLC (AEWM), a Registered Investment Adviser. AEWM does not offer insurance products. The insurance products offered by Bradshaw and Weil Insurance and Financial Planning are not subject to Investment Advisor requirements. AEWM and Bradshaw and Weil Insurance and Financial planning are not affiliated companies. Our firm is not affiliated with the U.S. government or any governmental agency. 1490144 – 10/22