Medicare Supplemental Insurance News and Articles

Medigap vs Medicare Advantage: Which is the Best Medicare Supplement?

For many seniors considering health care, the pivotal question is in deciding between Medigap vs Medicare Advantage. Finding the best option depends on a variety of factors, but it also depends on how much effort you’re willing to expend in order to find the plan that’s best for you.

What is Medigap and Medicare Advantage?

Both are offered by private insurance companies, and both help to cover the gaps of regular Medicare. Medigap refers to a group of supplemental insurance plans that work in conjunction with your regular medicare benefits. In contrast, Medicare Advantage plans are separate from Medicare. In fact, if you purchase a Medicare Advantage plan, you are de-enrolled from Medicare. Following are some more key differences:

• The benefits of Medigap plans are standardized by the federal government, meaning that plans sold by different insurance companies all offer the same benefits.


• Medicare Advantage plans must provide at least the same coverage as Medicare A and B, but vary widely beyond this minimum set of benefits.


• Medigap plans offer services from a large network of doctors and caregivers, while the services offered by Medicare Advantage plans are usually in a restricted network.


• Medigap plans always require an additional monthly premium.


• The premiums for Medicare Advantage plans are often less than those for Medigap plans, and in some cases there are no monthly premiums for Medicare Advantage plans.

As you’ve probably realized from reading that last bullet point, Medicare Advantage plans are usually cheaper than Medigap plans. So, if you’re willing to deal with the restricted network (i.e., you don’t plan on being a perpetual globetrotter) and your funds are limited, the Medicare Advantage plan may be the best choice for you. But, of course, there are other very important factors beyond monthly cost that you should be aware of.

Making the choice of Medigap vs Medicare Advantage

Medicare Advantage can be cheaper, but not necessarily so. For instance, the premiums for those Advantage plans that require them will rise over time, while policy holders of Medigap plans can select options in which the premiums are locked. In addition, out-of-pocket costs for many services such as hospital stays are often much more expensive with Advantage plans than they are with Medigap plans.Seniors considering a Medicare Advantage plan should read the fine print of the policy benefits to determine that the coverage satisfies their needs. They should also contact their physicians to ensure that the plan they desire is accepted.

The key is doing the research. In addition to reading this article you may want to visit Senior65.com which does a good job of explaining how to set up Medicare and Medigap plans.  Additional articles on this site that may be of interest are:

Introduction to Senior Health Insurance
4 Easy Steps to compare Medicare Supplemental Plans
Get the Best Price for your Medigap Plan

Researching Medicare options can be a lot of work, and for many seniors, the daunting task of verifying all of this information drives them to considering a Medigap plan. As mentioned before, the benefits of Medigap plans are standardized, so there is less variation to consider, and with the wider network of doctors. Click here to get a quick Medigap quote

So when comparing Medigap vs Medicare Advantage, figure out how comfortable you are evaluating the important details, and don’t rush into a decision! If you need help along the way contact our licensed agents at 800-930-7956.

Medicare Supplement Comparison in 4 Easy Steps

If you want to run a Medicare supplement comparison right now, visit our quote engine, enter your zip code (all other info is optional) and click on the “Next Step” button.  You’ll get a list of Medicare supplemental plans available in your area, along with their prices.

If you want to educate yourself a bit first, read on.

People often feel overwhelmed at the prospect of selecting a health insurance plan to supplement their Medicare for one reason:  it’s confusing territory.  But with a little background information and some guidance, you’ll be able to run a Medicare supplement comparison and make an informed decision about which is the right Medicare supplemental plan for you.

Step 1:  Know the Definition of Medigap Insurance.

Medicare supplemental insurance is commonly referred to as Medigap because it was designed to fill in the gaps left behind by Medicare.  Medigap is different from Medicare Advantage Plans, which are a way to receive Medicare plus additional benefits.  Medigap plans were designed to help you pay for things that Medicare does not, such as Medicare coinsurance and copayments or skilled nursing care.  Medigap plans are sold by private insurance companies, but standardized by the Federal government and they are named for the letters of the alphabet.  The PDF table below shows a summary of the plans for sale starting on June 1st, 2010.

Medigap-June-2010.pdf

Step 2:  Set Your Priorities.

As you saw in the PDF table above, Medigap plans cover a specific set of benefits.  The way to choose the right for you is to know which benefits you value and which you can do without.  Print the table above and circle those benefits you value most.  Then check to see which lettered Medigap plans offer the benefits you want.  Cross off the plans that don’t offer the things you care about most.

Step 3:  Understand Medigap Pricing.

Medigap plans are generally priced in one of three ways as outlined below.

• Attained Age:  these plans are priced based on the subscriber’s age at any give time.  That means the premiums go up over time as you age and they can quickly get expensive.
• Issue Age: these plans are priced based on the subscriber’s age at the time they first enroll in the policy.  Premiums do not go up as you age, but only moderately in the event of health care inflation.
• Community Rated:  these plans are priced based on where the subscriber lives and like the issue age Medigap plans, they do not increase over time because the subscriber has aged.

If possible, we recommend that you select an issue-age or community rated plan.  Though these may appear to be more expensive in the short run, they tend to be much less expensive in the long run because the premiums are locked in and do not continue to steadily rise as you age.

Step 4:  Get a Quote.

Now that you’re armed with some information (have that marked-up PDF table at your side!), you’re ready to get a quote.  Just visit our quote engine, enter your zip code (all other info is optional) and click on the “Next Step” button.  You’ll get a list of Medicare supplemental plans available in your area, along with their prices.  Any plan that is not available for sale in your area is automatically excluded from your results.

If at any time you would prefer to speak to a licensed Medicoverage agent, just visit our contact page and give us a call.  We’re here to help.