Having Medicare can be a blessing but figuring out which options are best for you can be difficult. If you really want to make the most of this coverage and save money on your health insurance, understand the basics first.
Medicare ABC
When it comes to Medicare, Part A, and B together provide basic coverage. Part C or the Medicare Advantage includes more comprehensive coverage to limit out-of-pocket costs. Part D can be combined with A & B to benefit those who need prescription drug coverage, though it also means you pay an additional premium. Medigap or the supplemental healthcare plan is what you need to reduce your out-of-pocket charges even more than Medicare Advantage, though it doesn’t add coverage to your Medicare.
Now that we’ve covered the basics let’s get into the difference between Medicare Advantage and Medigap and figure out which one is best for you.
Medigap
To start with, Medigap doesn’t cover prescription drugs. You’ll need to buy Medicare Part D for that. Though it will pay for some (or all) of the 20% of medical costs you would pay out-of-pocket depending on the plan you choose. When it comes to doctors, Medigap allows you to see any doctor in any state of the U.S. who accepts Medicare. It even covers international doctors’ visits as long as they accept Medigap. Though you can’t claim any reimbursement for services if you choose a provider who does not accept Medicare. It also doesn’t cover dental or eye care.
Medicare Advantage
Unlike Medigap, Medicare Advantage does cover prescription drugs and some plans even offer dental and vision care. Though when it comes to coverage for the 20% of medical costs you must pay out-of-pocket, it has different options for copayments, deductibles, and/or coinsurance which can be vary depending on the plan you choose. With Medicare Advantage, you will need to stay within the network of service providers. While certain plans offer some coverage for out-of-network providers, the rates can vary. Depending on the plan you choose and the network (HMO vs. PPO) out of state coverage may be limited or excluded entirely. Out of country coverage, on the other hand, isn’t even on the table.