If you want to understand health insurance for seniors, it is very imperative that you understand the difference between Medicare Advantage plans and Medicare supplements. The plans are open to people who receive Medicare benefits in the US through Part A and Part B. The way they work is quite different.
Part A and Part B are seen as “original plans”. Many American retirees are qualified for insurance, although most eligible beneficiaries pay a Part B premium to cover the cost of part of the coverage. The plans are largely funded by taxes.
What is the gap?
Supplements are sometimes referred to as Medigap plans. This is because part A and part B of the original Medicare plan cover many basic healthcare costs. But they don’t pay for everything. The recipients may also have to pay many expenses for healthcare services that are covered. These costs may include co-payments and deductibles.
So, if you only have Part A and Part B, you may still have to pay a lot of your medical expenses, and it may make budgeting for healthcare difficult. These uncovered benefits and costs are referred to as “gaps,” and therefore, the supplements are referred to as medigap plans.
To control these extra costs, many people opt for a medigap plan. This is a private health insurance policy from a private health insurance company.
Beneficiaries of Medicare supplement pay a premium for this health insurance policy. The surcharge takes care of part or the entire costs that the original Medicare plan omits.
The covered person still uses Part A and Part B to pay for the basics. Many beneficiaries also pay a Plan B premium, which, however, can be deducted from a social security check.
Supplement plans work with the original plan. There are two different premiums to pay. One goes to Part B, the other to the private insurer.
How is this different from Advantage plans? Find out more at https://www.medisupps.com/
Medicare Advantage plans are also marketed by private insurance companies. But they do not work with Part A and Part B in the same way. Instead of having the original plan cover it’s own part of the tab, and then provides extra coverage, the MA plan will be the only policy. The Medicaid and Medicare Center regulates these plans and they must provide services that are equal to or better than the original plan.
Members still have a Plan B cost to pay for. Some MA plans actually provide part of that premium, some do not charge an additional premium, and some require an additional premium. This is because the taxpayers who would cover for Part A and Part B will actually pay to the private insurer for cover. If the funds are sufficient to pay the plan, no additional premium is required. In some cases, the amount of funding will be sufficient to partially or fully compensate the Part B premium. In other cases, insurers need an additional premium.
Even with an MA plan, members can still have expenses. There may be co-payments and deductibles. These plans vary a lot. But these bag costs should be controlled.