Key Differences Between Medicare Supplements & Medicare Advantage

By Author: Tyra Phillips
Total Articles: 78
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Many seniors will make tough decisions regarding their health insurance as we approach the end of the year. When comparing Medicare Advantage Plans and Medicare Supplements there are a few key differences that need to be considered. Medicare Advantage plans may be cheap, but there are other things to consider including provider networks, co-payments, prescription drug coverage, and more.

Most Medicare Advantage Plans, including PPO's and HMO's, have provider networks. Seniors who purchase an HMO must visit doctors, hospitals, and specialists that participate in the plan network. If they choose to visit doctors or other providers who do not participate they will be not receive any benefit from their health plan. People who purchase PPO's can visit providers outside the plan network, but they will have higher co-payments and may have a deductible.

Medicare Supplements do not have provider networks. All doctors, hospitals, and specialists who accept original Medicare will accept your Medicare Supplement Plan should you choose to buy one. This is because Medicare Supplemental Insurance is secondary in nature. ...
... As a result, Medicare Supplement Plans will pay for all procedures Medicare deems medically necessary.

Medicare Supplements rarely have co-payments, with the exception of Plan N. People who purchase Medicare Supplement Plan F rarely pay for any medical services, which is why this plan is the most popular option among seniors. Medicare Advantage Plans, on the other hand, have co-payments for nearly everything, including hospital stays, which are quite expensive.

The one benefit Medicare Advantage Plans have over Medicare Supplements is they often include prescription drug coverage. Keep in mind, if you purchase a Medicare Supplement Plan you can purchase a stand-alone prescription drug plan, which will cost an additional $15 to $40 per month in 2011 for a good plan. It is very important to compare all Medicare plans to ensure your plan covers your prescriptions. If you purchase the wrong plan you may get trapped paying huge co-payments.

Medicare Supplements are far superior in terms of coverage and convenience, but they are also more expensive in most areas. Most experts recommend Medicare Supplement Plans for seniors over the age of 65 due to their comprehensive nature. Furthermore, these plans can limit your total out of pocket costs for medical services. Medicare Advantage Plans can be beneficial in some areas as long as your doctors and hospitals accept the plan.