If you are new to Medicare, you will quickly hear about Medicare Advantage and Medicare Supplement. They sound similar, but they work very differently.
Original Medicare Is the Starting Point
Original Medicare (Parts A and B) covers hospital and medical care, but it has deductibles, coinsurance and no annual out-of-pocket maximum. Most people add one of two types of coverage.
Medicare Supplement (Medigap)
- Works with Original Medicare and helps pay costs Medicare leaves behind.
- Standardized plans (such as Plan G or Plan N) are sold by private insurers.
- You can generally see any doctor or hospital that accepts Medicare, nationwide, with no network.
- Higher monthly premiums, but predictable costs. You typically add a separate Part D plan for prescriptions.
Medicare Advantage (Part C)
- Replaces Original Medicare with a private plan that provides Part A and B benefits.
- Often includes prescription drug coverage and extras like dental, vision and hearing.
- Often has low or $0 premiums, but you pay copays and must typically use the plan's network.
- Has an annual out-of-pocket maximum for covered services.
How to Choose
- Doctors and hospitals: Are yours in the plan's network?
- Prescriptions: Are your medications on the formulary?
- Budget: Do you prefer a higher premium with lower surprises, or a lower premium with copays?
- Travel: Do you spend time out of state?
- Health: Supplement rules can depend on when you apply.
Timing matters. Supplement plans typically have a guaranteed-issue window when you first enroll in Part B at 65 or older, so talk to us before you decide.
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE (TTY 1-877-486-2048) to get information on all of your options. Virgin Financial Group is not connected with or endorsed by the U.S. government or the federal Medicare program.