Is Medigap Plan Better Than Medicare Advantage?
Over the past few decades, the cost of private insurance has continued to rise exponentially forcing a majority of people to seek alternatives to traditional healthcare insurance. This has grown into a worrying trend, especially considering that the said alternatives cannot sustain the needs of the people. It’s even more troubling that the most affected are senior citizens who are past the ages of retirement, seeing that most have no other sources of income to finance their healthcare plans. To most, making the decision to choose on the best Medicare plans has become a painstaking if not an overwhelming task.
Before deciding on the best option suited for your needs, you must familiarize yourself with the basics of each plan; Medicare supplement insurance (Medigap) and Medicare advantage plans. One thing to note is that they all have distinct benefits but then again, there's a great need to make prior plans and arrangements as they’ll have different requirements, preferences, and cost demands. In answering the question “is Medigap plan better than Medicare advantage?” we’ll need first to dive into the specifics. Here’s what you need to know:
Comparing Medigap and Medicare Advantage Plans
The importance of this segment is to educate you on the major disparities between these two plans because your decision will ultimately impact your out of pocket costs. Medicare supplement insurance, also known as Medigap, is a supplement insurance plan that works side by side with your original Medicare to provide you with, as the name suggests, to supplement medical coverage.
While not all Medigap plans will offer you comprehensive coverage, finding a plan under Medigap that you can rely on for all your medical expenses is of utmost importance. For instance, Medigap plan F seems to be the best choice, especially to senior citizens because it will cover most of their original Medicare expenses, including copayments, deductibles, and coinsurance; this page has info on the amount of plan F that will be covered by your Medigap plan and not by your original Medicare. This is perhaps the reason why most people enroll in a Medigap plan; to get reimbursement for the out of pocket costs they incur every time they either get hospitalized or are faced with a serious ailment.
As you may be aware, Original Medicare doesn’t cover much as would be expected. This has forced a majority to seek additional health insurance. This is where Medigap comes into effect. This is, therefore, a plan for those who’ve already been enrolled under the original Medicare also known as plan A and B.
On the other hand, some Medicare Advantage plans do cover prescriptions but with additional costs. This is not the case with Medigap. In contrast, you’ll be needed to enroll under a separate Medigap plan that covers prescriptions known as Medicare prescription drug plan Part D.
How Medigap Works
If you’re already enrolled under Medicare, you’ll know that parts A and B are your basic plans with part D being, as earlier mentioned, a separate plan to cover for your prescription drugs. Now, these are not the only letters under Medicare. We also have Part C which in part will replace your basic coverage. But in regards to Medigap, the most significant plans are Plan F and G. Let’s take a look at how significant these plans are for seniors:
- Plan F – this is a comprehensive Medicare supplement covering all your Medicare deductibles. Eligibility for this plan is for individuals turning 65 years. This plan will, however, be phased out or has already been phased out. However, those who had earlier enrolled in the plan will continue to enjoy its benefits.
- Plan G – this is yet another comprehensive plan very similar to Plan F. It's got a lot of advantages and offers great benefits to Medigap beneficiaries. The main perk of this plan is that it covers 20% of what isn’t covered by Part B.
Determining the Best Option
When it comes to costs, it’s safe to say that Medigap is the best option. This is especially true for someone burdened with healthcare costs as a result of a terminal ailment or other recurring health problems. Anyone with higher medical expenses will be better off with Medicare supplement insurance.
There are so many differences between Medigap and Medicare advantage. But if you’d consider going through the above pointers, it will make it much easier for you to decide on the best plan suited for your needs. Alternatively, you may want to visit the Medicare portal for more information or help.
