Facts on Medicare Supplements vs. Medicare Advantage

I had planned to forego any further writing on Medicare plans and Open Enrollment which is now ongoing until Dec. 7, thinking that my Nov. 2 column on MEDI, a free service staffed by volunteers that provides advice on the topic would be enough. However, the vast number of television ads and the glossy circulars favoring Medicare Advantage plans that I viewed changed my mind. You are unlikely to hear many television commercials regarding Medicare Supplement plans so this describes that alternative.

Note that for anyone who is not currently on Medicare or who does not expect to be in the near future, you can ignore these notes until they affect you or will affect you soon. But for those currently on Medicare or who will soon turn 65 or are disabled receiving Social Security Disability and are approaching the date when you are eligible for Medicare, this column is for you.

A Medicare Supplement plan (also referred to as “Medigap”) is an add-on to basic Medicare. It is standardized so that, once you sign on to the plan you know exactly what services are covered. A Medicare Supplement plan will indicate a letter such as “F,” “K” or “N.” Regardless where you obtain your coverage all Plan “G” programs, for instance will have the same benefits. The difference between companies would be in cost and customer service.

A Medicare Advantage plan on the other hand depends on the issuer. It can and often does change from year-to-year and might even change during the year. Changes to the plan could include premiums, provider networks, pharmacy networks, copays, coinsurances and deductibles so it is important to research any plan before becoming involved.

The benefits can vary widely among plans. Therefore, to the