Medicare Supplement vs. Medicare Advantage - What's the Difference?

Making the choice between a Medicare Supplement or Medicare Advantage is tough and confusing. The considerations are different depending on the person, and the pressure to make the correct decision can be daunting.

I’ve explained the differences before in this post, but I ran across a chart and quiz created by UnitedHealthcare that do a great job of explaining key differences.

Here’s the Chart:

comparison-chart.PNG

Medicare Supplements are sold and administered by private insurance companies and used in addition to Original Medicare in order to fill in coverage gaps - such as limits on copayments, coinsurance, and deductibles. Supplements can also cover things that Original Medicare does not, such as stays at skilled nursing facilities and foreign travel medical care.

Medicare Advantage is essentially Medicare offered by private companies that may also include more benefits and a lower cost than Original Medicare. The extra benefits could include things like like fitness and wellness programs, vision, hearing, and dental services.

Here’s a Short Quiz to Test Your Knowledge

  1. Medicare Part A covers costs when you’re hospitalized and Part B covers doctor visits and tests.
    True or false? (answers are at bottom of page)

  2. Original Medicare (Parts A and B) is premium free. Medicare Advantage (Part C) and Part D prescription drug plans are optional—you need to buy them.
    True or false?

  3. Medicare Advantage (Part C) includes the coverage of Original Medicare (Parts A and B) and may include extras like vision care or dental. Most Medicare Advantage plans come with drug coverage, too.
    True or false?

  4. Medicare supplement insurance (Medigap) pays for some of the things Medicare Advantage (Part C) plans don’t cover.
    True or false?

Answers:

Question 1: True - Medicare Part A covers you when you need to go to the hospital. It also covers things like skilled nursing care after you’ve been hospitalized and other types of skilled care, including hospice care. Part B helps pay for doctor visits, laboratory tests and some diagnostic screenings.

Question 2: False - In most cases, you don’t pay a Medicare Part A premium. However, there is a Medicare Part B premium. The Medicare Part B premium is deducted from your Social Security check, if you receive one. If you want to enroll in a Medicare Advantage (Part C) plan or Medicare Part D prescription drug plan you must purchase them separately.

Question 3: True - Medicare Advantage plans include the same benefits you would get in Original Medicare along with extra benefits and, usually, prescription drug coverage. But since they’re issued through private insurance companies, each plan will be different. Be sure to compare plans carefully.

Question 4: False - Medicare supplement insurance is designed to help pay for some of the things Original Medicare (Parts A and B) does not pay. In fact, if you have Medicare Advantage, an insurer cannot sell you a Medicare supplement insurance plan unless you are dropping Medicare Advantage to use Original Medicare and wish to add Medicare supplement insurance.

I hope that you had fun and learned something! If you have questions or need help, please let me know.