Medicare Supplemental Insurance & Medicare Advantage Plans
Someone on Facebook recently asked me,
“What’s the differences between Medicare Supplemental Insurance and Medicare Advantage Plans?”
Questions like these are the reason I love this business. People need to know that there are many options in Maine when you turn age 65.
There are many differences. One difference between Medicare Supplemental insurance (Medigap) and Medicare Advantage plans is that Medicare Advantage contracts operate on a calendar year basis (annually renewable) and Medicare Supplement policies are guaranteed renewable. Guaranteed renewable means that the insurance company cannot change what your Medigap policy covers once it is issued, or terminate your policy, unless you do not pay your premium within the grace period and/or you made a material misrepresentation on your application.
Another difference is the cost. Medicare Advantage Plans generally have lower monthly premiums than Medicare Supplements but you are required to share in your medical costs by paying co-pays as you use the plans. Medicare Advantage Plans operate very similar to the Medical insurance you may have had before you retired if you had an HMO or a PPO plan. Medicare Supplemental insurance (Medigap) plans generally have a higher monthly premium but you are usually not required to pay much else, if anything, out of pocket.
This is why many people turning 65 choose to meet with someone who can help them decide which plan is best for them. Choosing between these two types of Medicare insurance plans is an individual decision. What is the best plan for you may not be the best plan for your spouse. For more information you can also visit the Medicare website at www.medicare.org or call your local Area Agency on Aging to speak with a volunteer.
Need more help comparing the different health insurance plans? I can help you.
If you would like me to come to your home and meet with you one-on-one please Contact Me. My phone number is (207) 370-0143.
There is no obligation to you and no cost to meet with me.