A Medicare Supplement (Medigap) Plan is different than a Medicare Advantage Plan. Medicare Supplement Plans are also offered by private insurance companies and can help pay some of the health care costs that Original Medicare doesn’t cover, such as deductibles, co-payments and co-insurance.
Medicare Supplement Plans only supplements your Original Medicare benefits, whereas a Medicare Advantage Plan temporarily replaces your Original Medicare benefits. Medicare Supplement Plans always have a premium while many Medicare Advantage Plans have a ‘0” premium and offer additional benefits beyond Original Medicare. Frequently when you have a Medicare Supplement Plan you should obtain an independent Prescription Drug Plan or you will incur a penalty. In contrast, many Medicare Advantage Plans include prescription drug coverage as part of the plan.