What’s the difference between Medicare Advantage and Medicare Supplements

“Health is wealth” – they say. It really is wealth, or else why would firms bother coming up health insurance plans and why would people like you and me buy it! Mind and body are two different entities, and while the mind wouldn’t argue with us, the body tends to do a lot more than arguing. If we fall ill, we have to recover from doing even mundane things like taking a bath. People make retirement plans but fail to opt for health coverage that will assist them in their old age. Medicare is one such health insurance that focuses on the elderly but doesn’t turn a blind eye to those with permanent disabilities.

The more you know about Medicare, the more you get confused because it’s a realm on its own. Selecting a plan becomes cumbersome, but Uniquote will hold your hands even after assisting you in choosing suitable health insurance. If you haven’t heard about Medicare, it’ll be your lifesaver in the future. It’s affordable, a must-have to-do in your retirement plan, and a reliable option for when you don’t have to decide anymore. Medicare, Medigap, and all that jazz – there’s more to health insurance than meets the eye!

What is Medicare?

Medicare is health insurance that Americans above the age of 65 can opt for without any hassle. If older adults are suffering through specific conditions, they can opt too. Medicare first came into existence back in 1965. It was a part of the federal health insurance program. This has opened doors for many senior citizens who have benefited from it, especially disabled people at the end-stage illness. Medicare is of two types: The Original Medicare and Medical Advantage.

The federal government handles original Medicare. A person in need of medical attention can avail of the benefit from a doctor, hospital, or even a facility. The person in question won’t need any formal permission from their physician or a specialist. Keep in mind that a wide range of prescriptions won’t be covered in the original Medicare. Medical Advantage is an alternative that you can look at if you find any flaws in the original Medicare. Many people don’t know about Medicare since they are content with their regular health insurance. There are a few differences between that and Medicare.

People not retiring any time soon can opt for Medicare as well. As mentioned before, people are content with their health policy, but you can compare it with Medicare in terms of rate, principles, coverage (vision, dental, etc.) Many people are happy with Medicare since its supplementary plan includes Medicare Advantage, which is efficient on the wallet.

Who all qualify for Medicare?

United States citizens who are at least 65 years old qualify for Medicare. They should be a permanent resident for at least five years. Enrollment begins three months before the person’s 65th birthday. The process lasts for three months after that. Moreover, people below 65 years of age can apply for Medicare if they are diagnosed with everlasting disabilities, ALS, ESRD, etc.

What comes under Medicare?

There are a total of four Medicare parts. Each has its specific sets of rules. They are: 

Medicare Part A: This consists of hospital insurance. Inpatient care in the hospital, nursing home, and even home care is covered by Medicare Part A. Medicare Part B: This is the all-inclusive medical insurance. It covers all the doctor’s services, medical supplies, outpatient care, and even preventive services. 

Medicare Part C: Also known as Medicare Advantage Coverage, Medicare Part has all the same benefits that you can reap from any standard Medicare. You’ll benefit from the chain of private insurer networks. Medicare Part D: This includes prescription drug plans. This generally varies from $16-$17 per month to up to $71.

Medicare has a wide range of plans to choose from, and if your requirements are specific, such as hearing, vision, dental, etc. you can compare Medicare Advantage Plan.

Medicare Supplement Plans

Often referred to as Medigap, Medicare Supplements are recognized by alphabetical letters A, B, C, D, F, G, K, L, M, etc. Recipients can choose from 10 different plans. Keep in mind that there isn’t any similarity in Part A & Part B of Medicare to Medigap’s A & B. Also known as Medigap instead removes your burden from payments such as coinsurance, copayments, deductibles, etc. It won’t cover all your expenses, but it will definitely help you save some cash.

All the 10 plans of Medicare Supplements are available in 47 states. Massachusetts, Minnesota, and Wisconsin have their own Medigap plans. The core functioning of the plans might be the same, but prices vary by a huge margin. When it comes to coverage, Medicare’s Part A covers hospital costs and coinsurance for a year after the Medicare benefits are depleted. Moreover, Medicare Part B’s deductibles are covered by Medigap’s Plan C. Remember that coverage might be the same. Still, costs won’t be, so opting for a company that goes easy on your wallet without compromising on the plans is imperative.

Those wondering whether or not buying Medicap will benefit them, consider this scenario: A heart bypass surgery costs approximately $86,000, and if you have Medicare, you’ll receive a copay of $17,000. Though not a lot, you don’t have to bear the whole amount if you opt for a backup plan.

Medicare costs

Based on the type of Medicare you choose, the coverage varies. For instance, you wouldn’t have to pay the same cost as Medicare Part A when you opt for Part B. The former comes with some deductibles. What it means is that you’ll need to pay some amount, whereas Medicare takes care of the rest.

Medicare B, C, and D are premium-tier plans. Part B is approximately $135, excluding the $183 deductible every year. Most of the time, the person needs to pay some 20% of the cost approved by Medicare. Keep in mind that Original Medicare doesn’t offer such plans. Medicare Plan C is suitable for people looking for hearing aids. You’ll need to pay a full amount if you are getting dental care, fillings, cleaning, procedures, etc. Medigap offers great dental coverage. More on that in the next segment.

Medicare vs. Medicaid

Medicare and Medicaid are somewhat similar when it comes to health policies, but the coverage they offer differ a lot. Medicare caters to people over 65 years (although specific disabilities are accepted). Medicaid, on the other hand, is curated for children, disabled, pregnant women, and adults with low-income. Medicaid is a joint effort of the federal and state government. Local governments act on the guidelines given by the federal government. The state government scrutinizes the eligibility of citizens.

How does Medicare & Medigap pay for exorbitant charges?

Medicare’s supplement plan assists people with copayments, coinsurance, and deductibles. These payments are still to be made by Medicare patients. Medigap functions in a different way. They have private insurance plans, but they aren’t connected to Medicare in any way. In short, if you are a Medigap patient, don’t rant their frustrations to Medicare.

Moreover, if you buy two different Medigap plans from the same company, the package would be the same, but the price would be contrasting. Thanks to regulations, each package has consistent pricing in its category, but you’ll have to look for good coverage with great pricing.

Medicare is quite general and supports many people, but selecting the right plan could be overwhelming. UniQuote suggests you plans that cater to the person’s specific requests. If you don’t, the burden of huge expenses with something unfortunate happens, we’ll help you avoid such accidents.