Medicare advantage plans and Medicare supplement plans may serve the same end goal, but they operate differently. Medicare supplement plans are designed to supplement your original Medicare coverage, while Medicare Advantage plans will replace your original Medicare coverage entirely.
Each type of plan has its own pros and cons. One is not better than the other. The best choice depends on your unique needs and situation. I've outlined some of the pros and cons below, but if you're still left wondering which type of plan is best for you don't hesitate to get in touch.
Medicare Supplement Plans
PROS
- Low out-of-pocket expenses (people who purchase Plan F rarely pay for any medical expenses).
- Visit any doctor or hospital that accepts original Medicare.
- Guaranteed Renewable. Your policy cannot be cancelled as long as you pay the monthly premium.
CONS
- More expensive than Medicare Advantage Plans on a monthly basis.
- May not be able to enroll if you have pre-existing health conditions and are not in a guaranteed issue period.
Medicare Advantage Plans
PROS
- Low Monthly Premium
- Only need to answer one health question (Do you have End Stage Renal Disease?)
- May offer additional benefits such as vision, dental, and hearing.
CONS
- Your doctors & hospitals may not accept the plan
- Can have high co-payments for medical services
- Funding cuts may increase premiums and decrease benefits in the future.