Question: What is the difference between a Medicare Supplement and a Medicare Advantage Plan?
Often many people refer to any type of Medicare Plan as a Medicare Supplement, however, a Medicare Supplement is a very distinct type of plan.
A Medicare Supplement supplements what Medicare A and B leave as your responsibility. After deductibles and coinsurance, a Medicare Supplement plan typically picks up the remainder.
Medicare Supplement plans generally do not cover anything that Medicare didn’t pay a portion of. An example of this is prescription drugs as an outpatient. Medicare A and Medicare B do not cover prescription drugs as an outpatient, so a Medicare Supplement could not cover those services.
Most people that buy a Medicare Supplement also purchase a stand-alone prescription drug plan, or a Medicare Part D plan, to go along with their Medicare Supplement.
A Medicare Advantage plan does not work as a supplement. A Medicare Advantage plan actually replaces your part A and Part B of Medicare. It becomes your Medicare Plan.
Many Medicare Advantage plans include coverages that Medicare A and B do not cover such as eyewear, dental services, prescription drug coverage, and a preventive benefit for medical services. Typically, this is much better than what Medicare A and B provide.
Medicare Supplement plans supplement what Medicare A and B leave as your responsibility. A Medicare Advantage plan actually replaces your Medicare A and B and becomes your medical plan.