Med Supplement or Medicare Advantage (part 1)

I am often asked, which is better, Medicare Supplements of Medicare Advantage? The answer is not always simple and straightforward. What can you consistently afford, over the long term? Just because a policy offers more coverage doesn’t mean it’s better for you, especially if you can’t afford the make the premium payments. A lapsed policy, for non payment, is generally worthless. It all begins with a needs analysis, a benefit vs cost comparison, and most importantly, affordability and availability.

Medicare Supplements are the easiest to compare. There are currently 10 standard plans available to new enrollees. These plans have the same coverage and benefits regardless of which insurance company is the issuer. Not all plans are offered by all insurance companies and premium costs can vary considerably from company to company. The company with the best rate on plan A may not be the most competitive on plan G. It is important to compare which plans are available where you live, and from which insurance companies. In addition to premiums, consideration should be given to a carrier’s customer service reputation, price stability and overall financial ratings from the major rating agencies. Medicare Supplements do not include prescription drug coverage, so must be purchased separately as a PDP plan. That cost must be included in your comparison of Medicare Supplements and Medicare Advantage plans.

Of the medicare supplement plans currently available to new enrollees, Plan G has the most comprehensive coverage and the fewest unknowns. After the medicare part b deductible has been paid, plan G will pay all other costs covered by medicare. Currently plan G is the most purchased plan, although it generally has the highest premiums. You can check the medicare heading on this site to review a chart with a breakdown of coverage by plan.

Contact us for a review of your needs and availability of plans and premiums where you live.