subject: Supplement Plan Vs. Advantage Plan: A Health Insurance Comparison [print this page] The American government keeps its people financially secured by implementing a mandatory health insurance policy. This policy is called Medicare health insurance. This provides access to government-regulated health insurance programs for over 60 million Americans. Insurance guarantees are offered to senior citizens and those suffering from renal end stage disease. Health insurance programs cover expenditures on hospitalization, check-up, and drug prescription.
Medicare benefits for people aged 60 years old and above depend on their chosen health insurance package. However, their benefit coverage from this mandatory insurance program is limited. They do not guarantee 100% medical coverage; hence, policyholders end up spending money for out-of-pocket expenses. Because of this, some choose to purchase other health insurance plans. These are Medicare advantage plans and Medicare supplement plans.
Unlike usual Medicare insurance policies, Medicare advantage and Medicare supplement plans are offered at a higher premium, with either high-cost or low-cost monthly deductibles. Medicare advantage plans cancel existing Medicare health insurance accounts. Thus, Medicare advantage policyholders are automatically excluded from the government-regulated Medicare health insurance program. However, health care provisions in Medicare advantage are still controlled by government health insurance agencies.
On the other hand, Medicare supplement plans policyholders are eligible for Medicare health insurance programs. Medicare supplement plans are also called Medigap insurance plans. Medigap insurance policyholders have a wider scope of choice for medical providers. Medigap insurance policies are managed by private insurance companies. They have a more extensive access to health service providers. This gives policyholders a more diverse list for hospitals, medical centers, and doctors for check-up and medical services. Nevertheless, in terms of Medicare supplement comparison, stipulated premiums of Medigap insurance are higher than Medicare advantage insurance.
Furthermore, most medical and hospitalization services are covered by Medigap insurance policies. Medigap policyholders have fewer out-of-pocket expenses than those under Medicare advantage plans. For Medicare supplement comparison, the premiums of Medigap policies do not change over time, whereas premiums for Medicare advantage insurances can increase after a series of insurance renewals.
Medicare Advantage and Medigap insurance plans offer a more flexible choice for policyholders for future medical and health expenses. Both insurance policies have some advantages over ordinary Medicare plans. This is evident in Medicare supplement comparison, where the high costs of their premiums and deductibles are at par with their increased benefit on medical coverage.
by: Tyra Phillips
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