If you are Medicare eligible and have Medicare coverage, you may be interested in learning about the differences among Medicare Advantage Plans and Medigap Insurance Plans. These two types of insurance are often confused with each other, but they’re not the same. Here are some important things to understand. Then you can make an informed choice about which type of insurance best meets your needs.

There are two kinds of Medicare Advantage Plans. They are referred to as Medicare Advantage Plans and Medicare Part D Insurance. Both cover similar services, and both also accept Medicare. Part D Health Insurance requires a prescription to take it, and does not cover some of the services Medicare does. Medicare Advantage Plans can be used by anyone age 18 and older who has coverage through an employer, Medicare Parts A and B, or through a Medicare supplemental insurance provider.

Medicare Supplement Plans 2022 cover the same benefits as Medicare Advantage Plans, but differ because they specifically cover hospitalization, emergency room visits, doctor visits, and dental services. In addition, they also may cover long-term care, wheelchairs, and certain medications. Some Medigap Plans will also accept Medicare pays for certain “out-of-network” medical providers, depending on the plan.

Medigap Insurance Plans are typically more expensive than Medicare Advantage Plans. This is because they cover more services and coverages. They also usually provide more comprehensive prescription drug coverage and maximum out-of-pocket expenses. 

Although they are more costly, Medigap plans provide a higher level of coverage and security, especially in terms of prescription drugs. Because they accept Medicare pays, Medigap plans have the potential to provide more benefits if there is a Medicare Advantage Plan policy that covers the same drug name, generic name, or brand.

Medicare Part A, which is the Medicare Supplement Insurance Program, does not cover dental care, vision care, blood pressure medications, psychiatric medications, alcohol or tobacco use, cholesterol or diabetes medications, over the counter drugs, over the counter dietary supplements, or other health-care services (e.g., therapy, consultation, etc. ), and some disability payments. Medicare Parts B and C do not cover some wellness programs, disability income, and some prescription drugs. These plans are known as Medicare Advantage Plans. They are typically not as costly as Medigap Insurance Plans; however, many people choose to select these plans because they do not cover everything that Medicare does.

Medicare Parts D and E both replace some Medicare benefit coverage such as hospital stays, emergency room visits, and prescription drugs with other covered services. Medicare Parts A and B also replace some health-related services with different covered services. Medicare Supplement Insurance Plans are generally not available to individuals who are currently covered under Medicare. Medicare Supplement Plans can be very useful to senior citizens or people with certain pre-existing conditions.