Often, many people refer to any type of Medicare Plan as a Medicare Supplement, but 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.
But 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.
Medicare Advantage Plan
A Medicare Advantage plan does not work as a supplement, it doesn’t supplement part A and Part B of Medicare. 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 that typically is much better than what Medicare A and B provide.
Now again, 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.
Are all Medicare Supplement plans the same?
If the Medicare Supplement plans have the same corresponding letter, then they are the same.
For example, one insurance company is selling a plan F or a plan G and another insurance company selling the same plan F and plan G, the benefits under both of those are the same. Typically, what you’re looking at is the difference between the types of Medicare Supplement plans that a carrier might provide is the deductibles that you would be responsible for coinsurance, co-payment, those kind of things.
If you do have questions about different types of Medicare Supplement plans do some investigating. See what plan is going to work best for you. There’s a variety of different plans out there there’s plans F and G also Medicare Supplement K, L, M, and N. There’s a variety of different benefits that are out there in the Medicare Supplement field each providing a separate benefit level. Make sure you’re buying the most appropriate plan for you.
Am I Eligible for Medicare Advantage plans with zero premium?
Essentially anyone who’s eligible for part A and Part B of Medicare is eligible to enroll in a Medicare Advantage plan and can select a Premium plan that has a $0 premium. Most of the Medicare Advantage plans do have a premium to them but there are some that offer coverage with a no premium.
How can an insurance company have a plan that has no premium? Essentially what happens when you enroll in a Medicare Advantage plan is you are assigning your Medicare benefits to that insurance company, and Medicare is going to provide that insurance company with a monthly payment.
When you enroll in a Medicare Advantage plan, you’re making an annual election to do so. At the end of any year you can cancel your Medicare Advantage plan and revert back to original A & B of Medicare.
The idea behind it is these annual elections allow you a great amount of flexibility to get the most appropriate benefit program for you.