What is the Difference Between Medicare Advantage and Medigap?

What is the Difference Between Medicare Advantage and Medigap?

There are several different facets to Medicare all designed to cover different areas of your health care needs. While it is better to have options, having so many can be confusing when the lines between plans begin to blur. 

What is Medicare Advantage? 

A Medicare Advantage plan is a policy offered by private insurance companies that often offer additional coverage and higher limits compared to Original Medicare. Also known as Medicare Part C, Medicare Advantage plans combine Part A and Part B as well as often offer Part D. 

Medicare Part A covers inpatient hospital care, surgery, home health care, lab tests, hospice, skilled nursery facility and more. 

Medicare Part B covers outpatient care such as medical supplies, ambulance services, diagnoses and more. 

Medicare Part D is an optional coverage primarily offered through Medicare Advantage plans that covers prescription drug costs. 

Medicare Advantage plans can vary depending on your personal healthcare so be sure to shop around and compare quotes between multiple insurers to make sure that you get the best plan to cover all of your healthcare needs. 

What is Medigap? 

Medigap insurance also covers pieces missing from Medicare and Medicare Advantage policies such as coverage for copays, coinsurance and deductibles. This is an optional insurance that you can purchase alongside your other Medicare plans. It is not a replacement for Medicare or Medicare Advantage plans. In fact, you cannot purchase a Medigap policy unless you already qualify for Medicare. 

Do I Need Both Medigap and Medicare Advantage? 

Since Medigap is an additional policy, you will still need Original Medicare or Medicare Advantage to cover the bulk of your healthcare expense needs. However, even the most comprehensive Medicare Advantage plans don’t cover everything and commonly exclude costs for deductibles and copays. 

Deciding what coverage you need is an important decision that you should discuss with your health insurance provider and loved ones. Every individual’s health coverage needs are different and you will need a Medicare and Medigap plan tailored for your specific needs. 

How Much is a Medigap Plan? 

The cost of a Medigap plan varies depending on your insurance provider, coverage limits, deductibles and other factors. On average, you could pay around $270 a month for a Medigap policy. Connect with your insurance agent about how much coverage you need and different ways you can save on Medigap.