"The tale of the tape" according to the Medicare Dudes.
Okay...let's get to it. What is the difference between Advantage Plans and Medigap Supplements. Is one better than the other?
The answer to that one is...well...it depends. (Clears it up doesn't it!) Each option has it's own pros and cons.
Let's think about the differences starting with the Medicare Advantage Plans.
MEDICARE ADVANTAGE PLAN PROS
* Advantage Plans are usually significantly cheaper than Medigap plans.
* If you are healthy and do not go to the doctor except for your yearly checkup, you will likely pay nothing during the year (except for the premium of your plan - which may be $0) This is because Advantage Plans include co-pays (more on that below).
* You generally have access to things that Original Medicare and Medigap plans do not provide. Services such as eye glasses, hearing aids, dental coverage, chiropractic services, acupuncture, massage therapy and gym membership are usually included with Advantage Plans but NOT with Medicap plans.
MEDICARE ADVANTAGE PLAN CONS
* There are networks that you have to work that are set up that come to the table in your care. (It is really not very difficult to navigate however).
* You do have co-pays when you have something done. For instance, you may pay $30-40 (depending on the plan) to see a specialist; $175-$400 per day (again, depending on the plan) for a hospital stay.
Now...lets look at the pros and cons of Medigap Supplements. For this discussion we will be considering the top of the line Medigap Supplement available to people turning 65 this year and beyond. This is known as the "G" plan.
MEDIGAP SUPPLEMENT PROS
* Generally speaking, you pay your monthly premium and other than your Part B (of Medicare) deductible ($233 per year) you pay nothing. You go to the hospital and spend a few days there and everything (again - other than the Part B deductible) is completely covered and you pay nothing.
* You do not have to deal with networks and Primary Care Physicians.
MEDIGAP SUPPLEMENT CONS
* They tend to be expensive and will increase every year. The general rule of thumb is that a G plan for someone turning 65 will average around $130-150 per month (in addition to the Part B premium of $170.10)
* If Medicare does not cover something, the Medigap plan will not cover it. What does this mean? It means that you will need to purchase a stand-alone Prescription Drug Plan to work alongside your Medigap plan.
* There is no dental, vision, hearing, chiropractic, acupuncture and the like. This is because Medicare does not cover it - thus the Medicare Supplement does not cover it.
So which is best for you?
That is not a question that can be answered by a blog. If you would like to have a free consultation (you actually would never pay us anything if you work with us) - simply give us a call at 541-554-8382 or email us at johnc@jmcolegroup.com
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