Differences Between Medigap Vs Medicare Advantage

Health Insurance refers to a policy that shields all medical expenses during a medical emergency. In addition to medical expenses, health insurance also provides some tax benefits. Nowadays, medical bills are enormous; a person can lose the entire life savings with a single medical emergency. Hence, it is sensible to take a medical health insurance policy. One has to choose between Medigap vs Medicare Advantage Plans.

Types of Health Insurance Plans:

Individual Plan - This plan offers medical benefits like compensation, reimbursement, and cashless hospitalization. However, these benefits are for individuals only.

Family Plan – In contrast to the individual plan, a family plan covers the insurance for the whole family. The sum is equally divided among all the members of the family and it can be availed by any individual.

Senior Citizen Plan – As the name suggests, this plan is for persons aged above 60. It covers OPD expenses, da¬¬y care processes, etc.

Critical Illness Plan

Maternity Plan

Accident Plan

Medigap and Medicare Advantage

Traditional Medicare offers basic health coverage, but only pays around 80% of approved charges for hospitals and medical procedures. It doesn't cover prescription drug expenses.

What Is Medigap?

Medigap is a form of health insurance that offers additional coverage for typical Medicare plans. As the name suggests, it fills in the “gaps” in normal Medicare coverage by pay for costs that Medicare would not cover. These expenses may be deductibles, coinsurance, or health care expenses during foreign travel.

These plans are provided by state-licensed private insurance companies. There are many types of Medigap plans corresponding to degrees of coverage

What Is Medicare Advantage?

Another alternative to normal Medicare plans is Medicare Advantage, also known as Plan C. This plan is a basket made up of Medicare Plan A& B, thereby, making a comprehensive coverage for the insured. Even these plans are offered by private insurance companies, but they are backed by the government. Apart from normal Medicare coverage, the Medicare Advantage plan insurances costs for Adult daycare services, Wellness Programs, Vision & Hearing, Prescription drug costs, etc.

Comparing the Plans

Understanding the differences between Medigap vs Medicare Advantage will help choose the best fit plan. Following are various factors to be considered:

·         Location

One key difference that might influence the decision to select Medigap or Medicare Advantage plan is location and lifestyle. If a person rarely travels, then Medicare Advantage might be the best choice. If one travels often, then Medigap may be a better option.

Conclusion

While the premiums of Medigap are higher than Medicare Advantage, they result in few personal payments. In terms of physician network, Medigap also offers a great deal of flexibility in contrast to a restricted network provided by Medicare Advantage.

Moreover, Medigap has no paperwork to deal with.

On the other hand, Medicare Advantage has lower premiums, with easy enrollment and includes prescription drug coverage.

Thus, the insured must prudently choose Medigap vs Medicare Advantage Plans as per the needs and requirements. Click here to know more about #Medicare Advantage vs Medigap 2021.