How do Medicare Supplement Plans primarily differ from Medicare Advantage Plans?

Medicare Supplement Plans, commonly known as Medigap, primarily exist to provide additional coverage that fills the gaps left by Original Medicare (Part A and Part B). These plans help cover expenses such as co-payments, co-insurance, and deductibles, thus reducing out-of-pocket costs for beneficiaries.

In contrast, Medicare Advantage Plans are an alternative way to receive Medicare benefits. They bundle various healthcare services, often including additional benefits like vision and dental coverage, which are not provided by Original Medicare. Unlike Supplement plans that strictly enhance Medicare coverage, Advantage plans can encompass a broader range of services, but they operate under a different structure, potentially leading to different networks and payment models.

Understanding this distinction is crucial for beneficiaries as they decide on their healthcare coverage strategy. The primary focus of Supplement plans is to enhance the existing Medicare benefits, offering financial protection against the costs associated with healthcare services, while Medicare Advantage plans create a comprehensive program that can include extra benefits but operates as a substitute for Original Medicare.