Are Medicare Advantage Plans Supplements?
This is a question that is asked by majority of the people, especially those who are to choose the right type of Medicare plan to sponsor their healthcare expenses. There are many who mistake Medicare Advantage Plans to be Medicare Supplements.
Know about Supplement plans
Supplement plans are also called Medigap plans and are standard insurance policies meant to fill up the gaps that exist with Medicare Part A & B plans. Part is to provide hospital coverage, while Part B is to cover physician and medical services. The government is known to pay for sixty days of hospital day under Part A Medicare except for some deductible. A small amount of deductible is present for Part B, which then is said to pick around 80% of all approved medical services. Supplement can be found in various designs with majority of them paying up for Part-A deductible and Part B 20% gap.
About Medicare Advantage Plans
Enrolling in one of the Medicare Advantage plans in 2019 you replace Medicare Part A & B. Rather, they tend to replace Medicare with that of private insurance plan. The plans generally offered as PPO or HMO coverage have hospital and doctor network registered to provide services to policy holders against co-payments from insurance provider and members. Only network providers can be accessed with HMO plans except for true medical emergency. Reduced benefits outside of the network are allowed by PPO plans.
Know the difference
When compared to Medicare Advantage Plans, Medicare supplements are found to be more expensive. Most are noticed to fill up completely the gaps present, thus leaving the member with little out of pocket expenses. Lower monthly premium expenses are to be borne on Advantage plans. But more needs to be paid while availing medical services.
By having Medicare Advantage Plans, the person gets covered technically under Part C Medicare, while Part A & B coverage gets deactivated. Medicare card will no more be available to be used for availing Medicare services. Although not active, Part B premium will be deducted from social security check. This payment will be used by the government as part of Advantage plan funding mechanism. As a matter of fact, the government is said to pay more to private insurance plan to cover full financial risk and offer proper healthcare.
Prescription coverage exists within the Advantage Plan package at no additional costs, which again is not covered by Supplements.