Medicare Supplements vs. Medicare Advantage Plans

Original Medicare does not have a maximum out-of-pocket limit, and most seniors choose additional coverage to help manage these costs. The two main options are Original Medicare + Medicare Supplement (Medigap) and Medicare Advantage (MA/MAPD).

Option 1: Original Medicare + Medicare Supplement (Medigap)

With a Medicare Supplement (Medigap) plan:

Medicare remains your primary coverage
The supplement helps pay some or most of the out-of-pocket costs (deductibles, copays, coinsurance)

Why people choose a Supplement:

Freedom of choice — see any doctor or specialist nationwide who accepts Medicare
No referrals required
Predictable costs — many plans cover most or nearly all out-of-pocket expenses
All Medicare Supplement plans require a monthly premium in addition to your Part B premium.

Learn More About Supplements

Important:

Medicare and Supplements do not include prescription drug coverage, so most people also enroll in a standalone Part D Prescription Drug Plan (PDP).

Learn More About PDP Plans

Option 2: Medicare Advantage (MA / MAPD)

A Medicare Advantage plan (also called Part C) is an alternative way to receive your Medicare benefits through a private insurance company approved by the Centers for Medicare & Medicaid Services.
The plan becomes your primary coverage instead of Original Medicare
Plans are required to cover all medically necessary services that Original Medicare covers

Key differences:

Most plans use provider networks (HMO or PPO)
May require referrals and prior authorization
Copays and cost-sharing differ from Original Medicare

Why many people choose Medicare Advantage:

Many plans have $0 monthly premiums (you still pay your Part B premium)
Most include prescription drug coverage (MAPD plans)
Often include extra benefits like dental, vision, hearing, and fitness programs
Built-in maximum out-of-pocket protection