Medigap vs Medicare Advantage: How to Choose

Here at MW, one thing we go over with all of our members is the difference between Medigap, (also known as Medicare Supplement) and Medicare Advantage plans. Let’s face it… every senior is overwhelmed with options. With several different avenues for Medicare Advantage plans and Medicare Part D plans, and dozens of insurance companies that offer Medicare supplements, it can confuse the savviest consumer when trying to find a shortcut.

In the end, we all want the same thing… the best healthcare plan… However, there are good plans that fit different people differently. Both Medicare Advantage and Medigap are great plans.

Here is a great chart for reference:


With Medigap, it covers most or all of original Medicare’s out-of-pocket costs. If you select this option, you will continue to be covered by original Medicare. After Medicare has paid your claims, it will automatically forward them to your Medigap plan. The Medigap plan will then pay its portion of the bill. Medigap plans do not cover prescription drugs. Therefore you must also purchase a stand-alone Part D plan if you want drug coverage.

When enrolling in Medicare, anyone can choose to receive their Part A and Part B benefits through a private health plan instead of through original Medicare. With a Medicare Advantage plan, you continue to pay your Part B premium as usual. You may also pay an extra premium for the plan. Most Medicare Advantage plans also include Part D prescription drug coverage.

*Remember, you are not allowed to have a Medigap and Medicare Advantage plan simultaneously.

Medicare Advantage plans typically come with deductibles and co-pays. But unlike original Medicare, they have an annual out-of-pocket limit. That means that once you have paid deductibles and co-pays that add up to the annual out-of-pocket limit, the plan will pay 100 percent of your medical bills for the rest of the year.

Medicare Advantage plans work like the healthcare plans you may have had during your working years. You will have to receive your care from doctors, hospitals, and other providers within the plan’s network.

Once you are enrolled in Medicare, you can join, switch, or drop a Medicare Advantage or Part D plan once a year during the annual open-enrollment period, which runs from Oct. 15 through Dec. 7.

Our mission is simple…Help those on Medicare, ease the financial burden of living on a fixed or limited income, by providing substantial money saving offers and discounts on both essential healthcare needs and everyday lifestyle products. If you have any questions or concerns about your current Medigap or Medicare Advantage plan, please comment below so we can assist you the best way possible.

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