Medigap Plans Or Medicare Advantage Plans – The New Option For Retirees

On June 1, 2010, Medigap Insurance, also known as Medicare Supplement Plans, went through obvious changes. Medigap, which offers health insurance to cover deductibles and co-insurances Medicare beneficiaries are required to pay for access to health services, just had a major transformation. Several plans have been canceled and new ones added.

Medigap plans E, H, I and J were eliminated. These were termed “Preventive Care Benefits” and “Home Recovery Benefit” plans. The inclusions are the supplement M and N plans, though it is not certain that all companies will offer the new ones. However, all new Medigap plans have added hospice care.

The new N Plan has similar benefits to Plan D, except there is a $ 20 medical fee and $ 50 additional emergency visits. These co-pays are valid after the deductible of $ 155 has been paid. The new plan M also offers benefits similar to plan D, but only covers part 50% of the excess part and none of the part B part. The cost of Plan N is approximately 70% of the cost of Plan F. And the cost of Plan M is approximately 85% of F. In total, the number of Medigap plans has been reduced from 12 to 10 plans.

While Medigap is an addition offered by private insurance companies to fill in the gaps in initial Medicare Part A and Part B, Medicare Advantage are offered by a private company with government contracts to implement your Medicare benefits. You must continue to maintain Part A and Part B and continue to pay the Part B premium if you choose a Medicare Advantage Plan

The changes affecting the Medicare Advantage plans, including reduced fees and mandatory loss ratios, will offer fewer benefits to Medicare Advantage members. As an example, you can pay less for a Medigap Plan than for a Medicare Advantage Plan if you choose Medigap Plan N. Also, for Medigap Plan N, among other features, there is no restrictive enrollment deadlines , network restrictions, and no hospital costs.

Note, that Medigap does not have a prescription protection while there are Medicare Advantage plans that do have. With a Medigap plan, you must purchase a separate Part D prescription coverage.

Before you make a decision, you need to explore your options in depth with an agent who can help you navigate this complicated insurance puzzle.


The two main reasons to go with a supplement plan instead of an Advantage plan is the freedom to choose your doctor and hospital, and many of the supplement plans will cover all the costs that Medicare does not cover. If you choose a supplement plan, check which ones pay deductibles for your health insurance and which ones pay for doctor visits. Remember that you also have to sign up separately for a prescription plan. If you do not take many medications now, you can now make a baseline plan. Every year you can change your prescription plan.

Not only is Medigap planning the remaining 20 percent, but it also helps if specialists require more than Medicare’s pre-approved payment.