What are Medicare Supplement Plans and its difference from Advantage Plan?

Medicare plans are types of insurance policy which are sold by the private companies to you. It covers a lot of areas which you would require to secure your future. It includes Medicare Advantage Plan and also other health plans such as Medicare Cost plans and Pilot program. It is mandatory for you to buy Part A and Part B of this health policy in order to avail the benefits. But there is a certain aspect which does not come under this policy, and this is where Medicare Supplement Plans come into play.

These plans are also called Medigap policy which covers certain important aspects which your original Medicare policy does not cover such as co-payments, coinsurance and deductibles. Just like the original Medicare policy, these plans are also sold by the private companies.

Difference between Medicare Supplement Plans and Medicare Advantage Plans

There is a very big difference between the two types of policy. This can be seen in the following points:-

  • A Medicare Advantage Plan is needed to get the benefits of the Medicare benefits whereas a Medigap policy only extends the coverage of these benefits in terms of cost or coverage area.
  • This can be explained using the following example. Your Medicare Advantage Plan is valid only up to the borders of United States. However, if you take a Medigap policy, the coverage area will increase and will extend outside the borders of United States as well.

What happens when you buy both a Medicare Advantage Plan and Medigap Policy?

Medicare Advantage Plan is a prerequisite for you in order to enjoy the benefit of Medicare Supplement Plans. When you purchase both the policies, and there is an incident where you have to claim compensation, then you will be compensated in the following way:-

  • First, the Medicare Advantage Plan will come into the picture and will give you the specified amount as mentioned in the contract.
  • It is the Advantage Plan only that the Medigap policy will come into action. After the Advantage Plan has compensated you whatever amount is left will be compensated by the Medigap policy. Medigap policy fills in the gap between the Medicare Advantage Plan coverage amount and the actual claim amount and hence received such a name.

Prerequisites

In order to buy Aetna Medigap plan  it is absolutely necessary to buy Part A and Part B of the Advantage Plan without which you will not be eligible to purchase it. It is so because the Advantage Plans cover a lot of areas and if you need something extra then only you should go for the Medigap policy.