Original Medicare coverage is Part A and B. Most folks add on Supplements or Advantage Plans to cover additional expenses such as copayments and deductibles. Two types of plans assist with covering extra costs: Medicare Advantage plans and Medicare Supplement insurance. They are a critical part of making Medicare feel like usual insurance. Read more to learn about these two types of coverages and how they can help you.
Medicare Advantage Plans
Medicare Advantage Plans overlap Original Medicare making it so the Advantage Plan is the provider and payer of your healthcare. These plans are offered by private insurance companies that have a contract with Medicare and provide at least the same coverage as Parts A and B. Benefits to the Advantage Plan may include flexibility when designing your plan, coverage for routine visits and out of pocket expenses all for low or no cost. Medicare Advantage plans are Managed Care Organization (MCO) plans which are similar to an HMO in the under-65 market.
Medicare Supplement Insurance
Medicare Supplements, also known as gap plans, are supplemental plans that work with Parts A and B to cover remaining costs not covered by Original Medicare. These policies are through private insurance companies and require a monthly premium. Medicare Supplements allow for broad network usage and for the carrier to pay claims instead of the government paying the claims. Medicare Supplements are like PPO plans in the under-65 market.
Because each person has different healthcare needs, it is essential to know all the benefits and drawbacks of Medicare Supplement and Advantage Plans. For questions regarding which type of coverage is best for you, contact us to speak with an insurance agent today!