One of the biggest decisions you’ll face when enrolling in Medicare is this:
Should I get a Medicare Supplement plan or a Medicare Advantage plan?
They both help cover costs that Original Medicare doesn’t – but they work in very different ways. And choosing the wrong one for your needs can lead to surprises down the road.
Let’s walk through the key differences so you can make a confident, informed choice.
First, What Do These Plans Actually Do?
Original Medicare (Part A and Part B) covers a lot – but not everything. It doesn’t cover:
- Prescription drugs
- Dental, vision, or hearing
- Long-term care
- Out-of-pocket costs like coinsurance and deductibles
That’s where Medicare Supplement and Medicare Advantage plans come in.
What Is a Medicare Supplement Plan?
Medicare Supplement plans (also known as Medigap plans) are offered by private insurance companies. They help pay for some or all of the out-of-pocket costs that Original Medicare leaves behind – like the 20% coinsurance under Part B.
Here’s how they work:
- You keep Original Medicare (Part A and B)
- You add a Medigap plan to help cover costs like deductibles, copays, and coinsurance
- You also need a separate Part D prescription drug plan
Medigap plans are standardized and labeled A through N. The most popular option is usually Plan G.
Learn more about Medicare Supplement plans here.
What Is a Medicare Advantage Plan?
Medicare Advantage plans (also called Part C) are an alternative to Original Medicare. These plans are offered by private insurance companies approved by Medicare.
Here’s how they work:
- You leave Original Medicare behind
- You get all your coverage through a private insurance plan
- Most include Part D drug coverage
- Many offer extras like dental, vision, hearing, fitness memberships, and even grocery or utility cards in some areas
But there are trade-offs:
- You must use the plan’s network of doctors and hospitals (often HMO or PPO)
- Plans may require referrals and prior authorizations
- Your out-of-pocket costs can vary widely depending on how often you use care
Learn more about Medicare Advantage plans here.
Key Differences: Medicare Supplement vs. Medicare Advantage
| Feature | Medicare Supplement | Medicare Advantage |
| Keeps Original Medicare | ✅ Yes | ❌ No (replaces it) |
| Drug coverage included | ❌ No (Part D needed) | ✅ Usually included |
| Provider freedom | ✅ Any doctor who takes Medicare | ❌ Limited to network |
| Out-of-pocket limit | ❌ No annual max | ✅ Has annual cap |
| Monthly premium | ✅ Higher | ✅ Often lower (sometimes $0) |
| Referral required | ❌ No | ✅ Often required |
| Travel flexibility | ✅ Covers nationwide | ❌ Limited outside service area |
Which One Is Right for You?
That depends on your:
- Health status (do you see specialists often?)
- Budget (are you more concerned about monthly premiums or surprise bills?)
- Flexibility needs (do you travel often or live in multiple states?)
- Risk tolerance (do you want predictable costs or are you okay with cost-sharing?)
Some people prefer the predictability and nationwide access of a Medicare Supplement. Others like the lower premiums and extra perks offered by Medicare Advantage.
There’s no one-size-fits-all answer – but I can help you compare side by side.
Final Thoughts
If you’re weighing Medicare Supplement vs. Medicare Advantage, don’t make this decision based on ads, postcards, or call center scripts. These plans are different by design, and each one works better for different types of people.
If you’d like to review your specific options, I can walk you through it during a one-on-one consultation – no cost, no pressure.
Schedule your free Medicare consultation here.
Niki Feret is the founder of Brickhouse Agency, a boutique Medicare insurance agency licensed in 37 states. As one of the few female agency owners in the industry, Niki leads with clarity, compassion, and a commitment to education – not pressure. Learn more or book your free Medicare consultation at brickhouseagency.com.