What is the Difference between a Medicare Supplement Policy and a Medicare Advantage Policy

Medicare Supplement (Medigap) Policy:

• Medigap policies are offered by private insurance companies to fill in the "gaps" in Original Medicare coverage.

• They work alongside Original Medicare (Parts A and B) to help cover out-of-pocket costs such as copayments, coinsurance, and deductibles.

• Generally, you'll pay a monthly premium for your Medigap policy in addition to the premium you pay for Medicare Part B.

• You can use any healthcare provider that accepts Medicare, as long as they accept your Medigap plan.
  

Medicare Advantage Policy:

• Medicare Advantage plans, also offered by private insurance companies, are an alternative to Original Medicare.

• These plans provide all the benefits of Original Medicare (Parts A and B) and often include additional benefits like prescription drug coverage (Part D), vision, dental, and wellness programs.

• Instead of paying premiums for Part A, Part B, and potentially a separate Medigap policy, you'll typically pay one monthly premium for your Medicare Advantage plan (although you still need to pay your Part B premium).

• Medicare Advantage plans usually have networks of providers, and you may need to use doctors and hospitals within the plan's network or pay higher out-of-pocket costs for out-of-network care.

So, in essence, Medigap policies help cover costs that Original Medicare doesn't, while Medicare Advantage plans replace Original Medicare with additional benefits and potentially lower out-of-pocket costs, however they can have more restricted provider networks depending on the county you live in.