Medicare Supplement vs. Medicare Advantage — What's the Difference?

Medicare Supplement vs Medicare Advantage: Which Is Better?

Understand the difference between Medigap and Medicare Advantage, including costs, networks, prescriptions and enrollment considerations.

This is one of the most frequently misunderstood Medicare topics.

Medicare Supplement Insurance and Medicare Advantage are not the same thing. They serve different purposes.

FAQ

What is Medicare Supplement Insurance?

Medicare Supplement Insurance, commonly called Medigap, helps pay certain out-of-pocket costs associated with Original Medicare.

What is Medicare Advantage?

Medicare Advantage is Part C—an alternative way to receive Medicare benefits through a private Medicare-approved plan.

Can I have both?

Generally, no. You can't use Medigap to supplement Medicare Advantage.

Does Medigap cover prescription drugs?

Generally, no. Medigap policies sold after 2005 don't include prescription drug coverage, so people who want Medicare drug coverage may need a separate Part D plan.

Are Medigap plans standardized?

In most states, standardized Medigap plans are identified by letters. The benefits for the same lettered plan are standardized, although premiums can differ among insurance companies.

Is Medigap expensive?

Premiums vary depending on the policy, insurer and location.

Why do people choose Medicare Advantage?

Some people prefer:

• An all-in-one plan

• A yearly out-of-pocket limit

• Potential additional benefits

• Integrated prescription coverage

Why do people choose Original Medicare + Medigap?

Some people value:

• Broad provider access

• Supplemental help with Original Medicare cost-sharing

• A traditional Medicare structure

Which is better? (Medicare Supplement vs. Medicare Advantage)

Neither is automatically better. Your health, doctors, prescriptions, finances, travel plans and personal preferences matter. Learn More