Supplement Plans or Advantage Plans
There are key differences between Medicare Supplement Plans and Medicare Advantage Plans that should be understood before making your decision.
Full-Service
Medicare Supplement Plans
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Typically higher monthly premiums compared to Advantage plans.
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Covers the 20% gap that Medicare does not cover.
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No network restrictions: you can go to any doctor or specialist in the country who accepts Medicare.
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Low out of pocket costs: no copays in in some popular plans.
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Low annual deductible of $197 for 2020.
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Standardized Plans: these plans are identical from one insurance company to the next.
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Must purchase a separate Prescription Drug Plan.
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Does not include Dental & Vision.
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Plans can not be changed or cancelled on you each year, but premiums can increase over time.
Medicare Advantage Plans
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Typically lower monthly premiums compared to Supplement Plans.
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Plans can have out of pocket costs in the form of deductibles, copays and coinsurance.
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"Network" Plans such as HMO and PPO. You must be sure your doctors and specialists are in the plan's network if enrolling in an HMO.
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Most plans include your Part D, prescription drug plans.
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Some of these plans include Dental & Vision at low costs.
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Plans can be changed or cancelled each year while new plans may become available. You are able to shop for new plans each year during open enrollment.
Medicare gives beneficiaries a 6 Month window to enroll in Supplemental insurance without having to undergo a health screening. This means that insurance companies must let you enroll in a plan up to 6 months after your Medicare Part B start date. If you miss this window, you could be denied coverage to to adverse health history and pre-existing conditions.
Important Information
This guide is meant to be for learning purposes only. There can be unique situations that need to be considered when going on Medicare.