What’s Better, a Medicare Supplement or a Medicare Advantage Plan?

It depends.  Here are the pros and cons:

Medicare Supplements, also known as MediGap Plans, require you to pay a premium. They do not cover prescriptions, so you would need to purchase separate insurance for that, called Plan D.  Medicare Advantage Plans do cover prescriptions.  In addition, some have limited dental and vision coverage.  

So why would anyone purchase a Medicare Supplement?  One word…FREEDOM.  With a supplement you can go anywhere in the United States that accepts Medicare payments.  If you want to go to The Mayo Clinic or John Hopkins or Stanford, you and your family physician make an appointment and you go. 

A Medicare Advantage Plan is an HMO.  You must go to their providers.  You can petition to go elsewhere, if you feel you’d get better care, but they would need to approve and, in most cases, you’ll be denied. 

Another advantage of Medicare Supplement plans is that after you’ve paid your deductible, you never see a bill. In most Medicare Advantage Plans I’ve seen, you might be responsible for up to $6,000 a year, if you have to deal with something major.