Medigap Insurance vs. Medicare Advantage

These are two popular terms in the Medicare Insurance marketplace that can leave us confused. What is the distinction between the two?

Medigap is the more common of the two. It is purchased when an individual signs up for Medicare Part A (hospitalization) and Part B (out-patient care) but is concerned about covering the gaps in Medicare such as coinsurance, copayments and deductibles. These policies are typically cheaper and pay claims based on what Medicare approves. All plans are federally mandated. Most differences from one insurance company to the next are in the premiums charged, the customer service, and the network of providers. Most people have been purchasing a Medicare RX plan along with the Medigap policy.

Medicare Advantage is an insurance policy that one purchases instead of going on Medicare. The policies typically cover Medicare parts A and B. Policies are offered by private insurance companies and can be HMOs, PPOs, and PSOs. These plans typically are more expensive. They provide all the coverage of Original Medicare and generally offer extra benefits; which many include prescription drug coverage. Your monthly premium will depend on the benefits offered and type of plan in which you enroll.

We at CB3 Financial Group are proud to provide Medigap Insurance and Medicare RX coverage through the nation's most respected insurance companies. Please feel free to call me, Mark Dupre, with any questions you may have. I will be glad to assist in making this most important decision.