Medicare Supplements & Advantage Plans

[The New Guy]

Forgive me if this is on the board somewhere already, but I haven't found it. What is the difference between a Supplement & Advantage plan.

Frank, I'm getting my list of questions together.

 

[midwestbroker]

A supplement is a private policy that is funded by the premiums. This plan works along with Medicare and pays for various deductibles and co-insurance (depending on the level of coverage).

A Medicare Advantage Plan (Part C) is a private policy that is funded by Medicare. While you keep your Medicare, the MA (Medicare Advantage) plan is your primary insurance.

Some basic advantages / disadvantages:

Advantage of Supplements:
Medicare is your Primary (no networks to worry about)
Depending on Coverage - no out of pocket costs

Disadvantage:
Can be expensive
Is underwritten

Advantages of MA plans:
Lower premiums
Can provide additional coverage above Medicare

Disadvantages:
Can be bound to a network
May have numerous co-pays, poss high out of pocket costs

Hope this helps

 

[Frank Stastny]

Forgive me if this is on the board somewhere already, but I haven't found it. What is the difference between a Supplement & Advantage plan.

Frank, I'm getting my list of questions together.

If you are ready, give me a call in the morning and your question above will be a good place to start.

 

[BizyGuy]

Midwest,
Great quick overview of the seperation of the two products.
Steve B

 

[midwestbroker]

Thanks!