Most seniors who are interested in health care insurance are torn between Medigap and Medicare Advantage. If you’re reading this, you should know that these two products are very much different from each other. Let us first define what each product has to offer.
What is Medigap?
This works along with your benefits as a group of supplemental insurance plans. They offer coverage that may not be available under your original Medicare policy. This includes international travel and additional hospital confinement. Medigap can also cover high deductibles and copayments that patients without Medigap are charged with.
Medigap benefits are dictated by the government so all the plans that are offered by various insurance companies are all the same. One of the most popular Medigap Plans is Plan F.
On the other hand, Medigap has no coverage for prescription benefits so you might want to consider getting additional coverage for this.
What is Medicare Advantage?
Unlike Medigap, Medicare Advantage is a replacement of the original Medicare plan. It is run by private insurance companies and offer the same coverage as Medicare A and B. Take note that Medicare Advantage have the same gaps as the Original Medicare plan in the event of critical illnesses. There are Medicare Advantage plans that have dental, prescription or vision coverage.
Medicare Advantage is essentially an HMO and are accepted by a smaller network of hospitals and doctors. Due to this, Medicare Advantage is a lot cheaper compared to Medigap plans. However, if you are not planning to leave the country and you have a low budget for your health insurance plan, this is the one for you.
A good thing about the Medicare Advantage is that they offer an Enrollment Period every year (AEP) so you can always change insurance companies. The date for the AEP is October 15 until December 7 every year.
Medigap vs Medicare Advantage
In the end, you should know which type of plan is good for you. However, you can also base your decision on the pay now or pay later scheme.
Medigap Plans have “Pay Now” plans that end up being more expensive every month. However, this plan promises an extensive coverage when it comes to medical services. If you have the money and you can afford to buy this plan, it’s sure to protect your health at all costs.
Medicare Advantage has “Pay Later” schemes and have cheaper monthly premiums compared to Medigap. However, out of pocket expenses can be higher with this plan because of the gaps in coverage. Senior who are interested in this plan should know that the out of pocket expenses can be as high as $6000 every year.
Making a decision is always easier with a trustworthy insurance agent ready to answer your questions. We at Covensure Brokerage LLC, provide expert assistance to our clients in choosing the best deal within their budget. We are always ready to help and give our services. Feel free to contact us at (248) 572-1580 or Click Here so we can give you a free quote.