What Is the Difference Between Medicare Advantage & Medigap?

Medicare was established to provide retired people with affordable access to health care. Over the years, this program has evolved, as holes in Medicare coverage have been exposed. Consequently, individuals are now offered Medicare Advantage and Medigap.

Medicare Advantage Features

• With Medicare Advantage, private health care plans are offered to recipients to replace their traditional Medicare and provide additional benefits, such as prescription drugs.

Medicare Advantage Benefits

• The benefits of Medicare Advantage include lower premiums, coverage where traditional Medicare leaves off, and a greater selection of health care providers.

Medigap Features

• Similarly, Medigap also offers different plans meant to supplement traditional Medicare coverage.

Differences

• Medigap allows recipients to choose between the 12 Medicare plans (A through L), all of which comply with federal and state laws. The plans are considered to be supplemental insurance plans to Medicare.

Considerations

• Medicare recipients can freely choose between Medicare Advantage and Medigap, but once they have made their choice they cannot also opt for the other program.