The difference between Medicare Advantage policies and Medicare supplement policies

The difference between Medicare Advantage policies and Medicare supplement policies

If you are 65 and no longer insured by a health policy, you will be entitled to Medicare. Now, Medicare has never been designed to insure 100% of all health care costs and generally only insures 70% -80% of all medical expenses. The rest 20% ​​to 30% is your responsibility and most people choose a Medigap coverage policy. There are two types of Medigap policies: Medicare supplemental policies, existing since 1965, and state health care policies, known as Medicare Part C, which have existed since 2006. Supplemental insurances have similarities with conventional health insurance plans with deductibles and service costs. Medicare Advantage policies are network policies that offer insurance based on hospital and medical rate agreements. These policies include preferred providers, health organizations, and private service policy rates.

The first difference between the two policies is that Medicare Advantage policies are designed to provide parts A and B. of Medicare. A Medicare policy pays premiums to insurance companies to meet all your health needs. This means that you do not connect directly with Medicare, but only with the network provider.  Now, all Advantage policies must offer at least the same amount of regular Medicare. There is therefore no difference between the amount of insurance, but the way in which the costs and expenses are checked.

Advantage policies offer lower monthly premiums, but higher spending costs. In other words, if you do not get sick or do not need to see a doctor, you rush. Expenses are also limited for each year. Additional policies have higher premiums but little or no expense. Advantage policies typically have a prescription drug policy and can save money by using a large group to get better prices. Supplements do not include prescription drugs, so you will usually receive a separate policy that can be tailored to your prescription needs.

Advantage policies use local networks to control costs and benefits may vary from year to year, but no less than part A and B insures. The additional policies are standardized, which means that Medicare defines what each supplement should contain in its insurance and is accepted anywhere in the United States where Medicare is accepted. The last major variation is that when you sign up for an Advantage policy, you have to remain with this program for a whole year. If you choose to change supplier, you can do it only from October 15th to December 7th the following year. At any time of the year, you can always change a supplement policy.

Medigap Policy F insures 100% of the deficiencies of the Medicare Part A and B policy. This means that it insures most of the Medigap insurance plans. This makes Policy F one of the most popular diets for people with Medicare.  Before signing an additional insurance contract, you need to understand the advantages and limitations of these policies. For example, each supplement policy has its limitations, the applicant may be asked to wait a certain period of time before insurance begins, or may have a limit on the amount that can be repaid and for how long it can last.