Medicare and Medicare Advantage Differences

Until 2010 when Medicare Advantage is discontinued, it pays to know the differences between Medicare supplement plans and Medicare Advantage.

It’s a fairly straightforward difference between Medicare and
Medicare Advantage, and it basically boils down to the majority of an
individual’s health care expenses is covered by Medicare. For example, Medicare part A will cover inpatient care at places like a hospice, skilled nursing facility or a hospital.

Medicare part B takes care of doctors and outpatient services, while
part D handles prescription drugs. One thing to remember is that parts
B and D mean paying a premium. While it looks like Medicare covers a
whole lot, it doesn’t cover everything. This is where Medicare
supplements or Medicare Advantage steps in if a person or family wants
100% of their health care covered.

If a person opts to buy Medicare supplements,
they are purchasing a “gap” policy that fills in the holes in the
original Medicare plan, usually referred to as a Medigap policy. With
these particular policies, there are various levels of coverage in 12
different plans with alphabet designations A through L. Each one of
these letters provides a different kind of supplemental health coverage
and the prices are unique, based on the different levels.

Medigap health insurance is offered by private health insurance
companies and there is a monthly premium to be paid. Usually the
premium is dictated by the level of coverage, age of the insured and
their zip code. As with many other things in life, these plans usually
have a price increase yearly.

With the Medicare supplement policies
there are usually open enrollment periods and a person is able to get
guaranteed enrollment. If an application is not made during the open
enrollment period, the usual health insurance underwriting routine
applies.

Medicare supplements
are additional coverage. Medicare Advantage is replacement coverage. To
file a claim under a Medicare supplement policy, a person must file a
claim with Medicare and the supplemental insurance company. In the case
of Medicare Advantage, the claim is processed by the policy provider.

Medicare Advantage also currently provides many choices such as a
PPO, FFS or HMO and right now plans are available to suit an
individual’s personal preferences and what is still being marketed in
the applicable zip code. All this will change when Medicare Advantage
is no longer offered in 2010. Now is the time to speak to a local Medicare health insurance provider to find out what other alternatives will be available to replace Medicare Advantage.

To learn more about Medicare, Medicare supplements, or Medicare supplement insurance visit GoMedigap.com.