How to Compare Medicare Advantage and Medigap

Comparing Medicare Supplemental and Medicare Advantage plans can seem daunting. When on Medicare you want the most coverage and as little out of pocket expenses as possible. Everyone receiving Medicare benefits will be enrolled in the original Medicare Part A and B automatically; later you may choose to add a supplemental plan often referred to as Medigap coverage or the Medicare Advantage Plan. Since the original Medicare A and B pays only a portion of your medical care, you end up being responsible for what Medicare doesn’t pay. That’s where Medigap and Medicare Advantage help.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Medicare Supplement brochure
• Advantage Benefit brochures
• Phone Book
• Internet Connection

1. Get all the information you can from your local social security office via the Internet or your local phone book in the government section. You do not need an appointment to simply go in and get brochures for Medigap and Medicare Advantage Plans. Thoroughly read all the information you pick up.

2. Recognize that Medigap is private insurance that fills in the gaps that the original Medicare does not cover. You keep your original Medicare Part A and B and then just have an additional policy. These policies will cost you a monthly premium and they do vary so it pays to shop around. On the Medicare website you will find various insurance companies that offer Medigap and what they will cost you.

3. Choosing a Medicare Advantage Plan will mean you are enrolled in a private insurance plan and will no longer be enrolled in the original Medicare but all your Medicare benefits still apply or roll into the Medicare Advantage Plan. This plan is more like a traditional HMO. Again, the premium that you pay vary greatly so it is advantageous for you to compare plans.

4. Call various Medicare Advantage and Medigap insurance companies and be prepared to take notes. It’s best to have the following information to ask so that you stay organized:
   
   Name of Insurance Company:
   Phone Number:
   Medigap or Medicare Advantage:
   What the monthly premiums are:
   Have the insurance company send you information

5. Realize that comparing these plans takes more than a couple hours; it can seem a bit overwhelming but being on a fixed income, you want to make sure you are getting the most for your dollars.
   
   The open enrollment for Medicare Advantage is once per year for about six weeks in November and ending in late December; this information is available on the Medicare website or your local Medicare office. Medigap enrollment is a bit more complex in that there is an open enrollment for six months after you begin receiving Medicare Part A and B.

Tips & Warnings

• Analyzing Medigap and Medicare Advantage may seem confusing, but the more information you have, the more prepared you will be to make the right decision for you. Medigap is useful for those wanting to keep their original Medicare but want to fill in the gaps that are often left. Medicare Advantage is useful for those wanting a more traditional all-in-one plan since Medicare A, B will be together, and you will only need one card.
• Make sure to focus on Medigap within the first six months you have Medicare Part A and B since this is the open enrollment period where you cannot be denied or charged more for any pre-existing conditions.

Resources

• Medigap and Medicare Advantage