Medicare Advantage Plans and Medicare Supplemental Insurance

There several choices eligible individuals may make about Medicare. There are different plans available, including Medicare Advantage Plans and Medicare Supplemental Insurance (Medigap). Below is a broad overview of those two coverages.

The knowledgeable team at Active Insurance Agency LLC in Brighton, Michigan, can also help you with your Medicare questions. Reach out to us for more information.

What Is Medicare?

Before exploring Medicare Advantage Plans and Medicare Supplemental Insurance, it is essential to understand what Medicare is.

In general, it is a federally funded health insurance program available to the following people:

·        Individuals who are 65 or older

·        Certain younger people with disabilities

·        Individuals with end-stage renal disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD)

Additionally, there are different parts of Medicare. Its primary benefits, known as Original Medicare, consists of two types of coverage: 

• Medicare Part A (Hospital Insurance) help pays for hospital services (e.g., inpatient hospitalizations, surgeries and similar care).
• Medicare Part B (Medical Insurance) helps pay for preventive services, labs, x-rays, vaccinations and other outpatient costs. 

Medicare Part D can also help cover the cost of prescriptions and recommended vaccines.

What Are Medicare Advantage Plans? 

A Medicare Advantage Plan, or Medicare Part C, is a Medicare-approved insurance plan sold by private insurance companies. They offer alternatives to the federally run Original Medicare (Part A and Part B) and may provide the coverages of Medicare Part A and Medicare Part B (with limited exceptions).

Additionally, Medicare Advantage Plans may offer expanded benefits such as dental, hearing and vision care and may include prescription drug coverage (Medicare Part D). However, Medicare Advantage Plans may have a different network of providers and other associated expenses.

What Is Medicare Supplemental Insurance?

Medicare Supplemental Insurance is also known as Medigap. Private insurers sell these plans to help pay for your share of costs that Original Medicare (Part A and Part B) does not cover. For example, they may provide coverage for copayments, coinsurance, deductibles (with exceptions for Part B deductibles) and the costs of care outside of the United States.

You must have Medicare Part A and Part B (Original Medicare) to be eligible for Medicare Supplemental Insurance. You cannot be sold a Medigap policy if you have a Medicare Advantage Plan unless you are switching back to Original Medicare.

Contact Us for More Information

The terms and options may seem complicated, but the professionals at Active Insurance Agency are ready to help you navigate the process. Contact us today for more information.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.