Medicare supplemental plans are insurance plans designed to fill the gaps in Medicare coverage. Original Medicare coverage includes Part A and B. Part A is designed to cover hospital care, nursing facility, hospice care, etc. Part B helps take care of doctor’s visits, preventive care, medical supplies and outpatient services. What happens when you need coverage that falls between the cracks in that list? The answer is Medicare supplemental plans.
What are Medicare Supplemental Insurance Options?
Medigap plans are supplemental insurance plans that help cover copays, deductibles and coinsurance. This can make your out of pocket costs a fraction of what they would normally be. To find out more about Medigap, visit our blog post Medicare Supplemental Insurance Explained. Medicare Advantage, also referred to as Plan C, is another option that replaces Original Medicare and Medigap supplemental policies. Medicare Advantage is a comprehensive health benefits package that allows for a broader span of coverage.
Why Choose Medicare Advantage?
According to the Henry J. Kaiser Foundation, a nonprofit, nonpartisan research institute, 17.6 million people were enrolled in Medicare Advantage in 2016. That’s 31% of the total 57 million enrolled in Medicare. Why enroll in Medicare Advantage if you already have Original Medicare? Private insurance companies administer Medicare Advantage plans, but they are regulated by the government. By law they must cover the same benefits as Original Medicare. These plans often include extra benefits like dental, vision, hearing and prescription coverage.
Medicare Advantage can be a great option if you want to keep your benefits to one monthly payment. If you have Original Medicare you will pay a monthly premium for Part B. Medigap supplemental insurance will add on a separate monthly payment as well. Choosing to add on separate dental insurance or prescription coverage can give you several premiums to keep track of every month. With Medicare Advantage all your benefits would be included in one monthly premium. Medicare Advantage is an alternative to Original Medicare and cannot be used in conjunction with Medigap supplemental insurance plans.
Another benefit of Medicare Advantage is that these plans must have an out-of-pocket maximum as required by law. With Original Medicare there is no out-of-pocket limit. You pay per service, as you need them. There is no limit to the amount you pay per year. However, Medicare Advantage has a strict out-of-pocket maximum. This means once you reach your limit, your plan covers the rest of the expenses for the year. Medicare Advantage premiums can change depending on where you live and the extras included in your plan. It pays to shop around for Medicare Advantage because the cost and coverage differ from state to state.
Original Medicare or Medicare Advantage?
If you are having trouble choosing between Original Medicare and Medicare Advantage, you are not alone. It can be hard to weigh the pros and cons of each plan on your own. Accurate Choice Insurance knows that there is no “one size fits all” insurance plan. We consider it our mission to match our customers with the best plan for their lifestyle, needs and eligibility.
If you have questions or would like to learn more about Medicare Advantage coverage options, contact us at info@accuratechoiceins.com or 702-425-4100!