What is one primary difference between Medicare Advantage Plans and Medicare Supplement Plans?

Medicare Supplement Plans, often referred to as Medigap policies, are specifically designed to cover the out-of-pocket costs that Original Medicare (Part A and Part B) does not cover, such as copayments, coinsurance, and deductibles. This means that they provide a valuable financial safety net for individuals by helping to reduce the overall cost of healthcare services that are incurred under Medicare.

In contrast, Medicare Advantage Plans are an alternative way to receive Medicare benefits and generally offer coverage that includes both hospital (Part A) and medical (Part B) services, sometimes along with additional benefits such as vision and dental coverage. They operate as bundled plans and can include a network of providers, which means they might not serve the same function as a supplement.

The option that Medicare Advantage Plans cover only outpatient care is misleading; they actually cover both inpatient and outpatient services. Additionally, saying that Medicare Advantage Plans provide secondary coverage is inaccurate; they are a primary source of coverage that replaces Original Medicare. Lastly, while Medicare Supplement Plans offer additional benefits, they do not function as managed care plans, a characteristic associated primarily with Medicare Advantage Plans. Thus, option B effectively highlights the distinct role that Medicare Supplement Plans play in the broader Medicare system.