Medicare Supplement Plans vs. Medicare Advantage Plans

Millions of American seniors purchase Medicare supplement plans and Medicare Advantage plans in order to reduce their overall healthcare costs and save money on their health insurance premiums. However, many of them do not fully comprehend the different types of plans and options available to them – therefore, before you purchase a Medicare Supplement plan or a Medicare Advantage plan, you should be sure to research and understand the various choices.

In 2009, about 1400 Medicare Advantage plans will be eliminated by the Obama administration – a move which is likely to further increase the popularity of Medicare supplements. That said, Medicare supplement plans are already the preferred healthcare option because they are clear-cut and easily understandable – and most importantly, individuals enrolled in these plans can visit any doctor or hospital they wish. Moreover, people who purchase these plans often rarely pay directly for healthcare services, since some of these plans have no copayments or deductibles.

The Medicare advantage plans that are currently on the chopping block, so to speak, are plans that would end up charging policy holders more than the original Medicare would for home health care, dialysis, and other services. Furthermore, these plans must charge each beneficiary exactly the same amount, regardless of pre-existing health conditions or other issues. Last but certainly not least, they must cap the annual out of pocket costs for policy holders to $3400 per year.

Clearly, there are many advantages to choosing one of the many Medicare supplement plans over a Medicare Advantage plan, making it essential that seniors understand the various choices available to them so they can make the best possible choice and meet all their healthcare needs.

Medicare supplement plans
Medicare supplement plans