It is important for every senior who has touched the age of 65 to know about senior health insurance. At the same time, there is a need to understand the difference that exists between Medicare Advantage Plans and Medicare Supplements. Such plans are available to citizens receiving Medicare benefits through Parts-A & B. Both the plans are said to work differently.
According to the industry experts, Part A & B is regarded to be ‘original plans’. Coverage is availed by majority of the retired citizens of the country. Part B premium is paid by most qualified beneficiaries to underwrite some coverage costs. Such plans are funded largely by taxes.
Know the Gap
At times, Supplements are known as Medigap plans. The reason is because, Part A & B of traditional Medicare Plan tends to cover basic health costs. However, everything is not paid for. hence, the beneficiaries are required to make out of pocket expenses to avail health service, which may include co-payments and deductibles.
Hence, if the person has Part A & B plans, then he still will be required to pay a good amount to cover medical costs. Thus, budgeting for healthcare may become difficult. such out of pocket costs and uncovered services are known as ‘gap’, the reason why, Supplements are known as Medigap plans.
What is to be understood?
For controlling these additional expenses, people will have to purchase Medigap plan, which is private health plan offered by private providers.
- Premium for such health insurance is offered by Medicare supplement plan.
- Supplement tends to cover few or all expenses which are not covered by the original plan.
- Part A & B plans are still used by the covered person to make payments for the basics. Plan B premium is also paid by most beneficiaries. But the amount will be deducted from the social security check.
Therefore, supplements are found to work perfectly with original Medicare plan. Two distinct premiums are to be paid, with one to Part B, while the other to private insurer.
How it is different from Medicare Advantage Plans?
Private insurance providers promote Medicare Advantage Plans like Humana Medicare Advantage 2019. However, these do not function along with Part A & B. Instead, it will be useful to have original plan and get supplement plan to offer extra coverage. Then Advantage plan will become the sole policy. Hence, be it Medigap or Advantage plan, the choice entirely depends upon the individual and his needs.