What is the difference between Medicare Advantage and Medicare Supplemental?

After a lifetime of working, you are finally going to retire. This entire year, you have waited for this special day. Right after work, you and your husband are going on an ultimate adventure--a safari through Tanzania to see the African Great Lakes Region and the roaming wildlife--cheetahs, lions, wildebeests, gazelles, ostriches, elephants, giraffes, and others throughout the land. While you were on the plane, basking in anticipation of your vacation, your husband leaned over, whispered in your ear, and said, “Did you find out the difference between Medicare Advantage and Medicare Supplemental—you know you only have one more month to enroll for coverage?" You said to him, “I can’t believe we are discussing this now! When we return home from our trip next week, I will call our insurance agent to find out the difference and buy coverage with the appropriate insurance plan for me.”

In this situation, the husband asked a valid question. What is the difference between Medicare Advantage and Medicare Supplemental Insurance plans? Both plan options are great! Here are the primary differences that you should consider before you buy one of the benefit plans.

• Medicare Advantage includes Medicare Part A and Medicate Part B and routine dental, vision, hearing and/or fitness benefits. It includes Prescription Drug Coverage as well. Medicare Supplemental provides coverage for the out-of-pocket costs Medicare Part A and B do not cover. It does not cover Prescription Drug Coverage (Part D). You will have to select coverage elsewhere for Part D coverage.

• There are designated time periods during the year when you can enroll or switch to another Medicare Advantage Plan. You can apply to purchase Medicare Supplemental coverage after you turn 65 and join Medicare Part B.

• Generally, Medicare Advantage requires coverage for in-network doctors and hospitals. With Medicare Supplemental Insurance, you can go to any medical provider that accepts Medicare.

• Generally, Medicare Advantage requires referrals for Specialists. Medicare Supplemental does not have this requirement.

• Medicare Advantage generally has co-pays but lower premiums. Medicare Supplemental plans have higher premiums but no copays.

• All health conditions are accepted under Medicare Advantage.

Remember, whether you are planning a vacation or not, when you are approaching 65 years old, you should select a Medicare Advantage or Medicare Supplemental plan that is right for you. Let me know if we can help.