Medicare Advantage vs Medicare Supplement: Side by Side

Choosing Medicare coverage after age 65 can feel complicated. Two of the most common paths are Medicare Advantage and Medicare Supplement insurance, also called Medigap. Both options can help manage health care costs, but they work very differently.

Side By Side

This Medicare Advantage vs Medicare Supplement comparison keeps the details simple. It looks at premiums, cost sharing, prescription drugs, extra benefits, doctor networks, prior authorization, and estimated monthly totals.

The right choice depends on your doctors, prescriptions, travel habits, health needs, and budget. Use this guide as a starting point, then review your personal options before enrolling.

> Important: Medicare Advantage and Medicare Supplement are not the same type of coverage. You generally cannot use a Medicare Supplement policy with a Medicare Advantage plan. Medicare Supplement insurance is designed to work with Original Medicare.

For additional guidance, review Medicare.gov’s official comparison of Original Medicare and Medicare Advantage.

Medicare Advantage vs Medicare Supplement at a Glance

Both options are in addition to your Medicare Part B premium, which is typically $202.90 per month. Costs shown are averages and vary by age, ZIP code and carrier.

Option One: Medicare Advantage

Medicare Advantage is an alternative way to receive your Medicare benefits through a private insurance plan. Most Medicare Advantage plans have a network of doctors and hospitals. Many also include prescription drug coverage and additional benefits that Original Medicare does not routinely cover.

Medicare Advantage benefits and costs

• $0 premium most of the time
• Copays and coinsurance up to the max out-of-pocket, which averages $6,000, usually no deductible
• Includes drug coverage
• Includes dental, vision and hearing a lot of the time
• Includes a gym membership a lot of the time
• Critical illness coverage, around $55
• Hospital coverage, around $70
• Home health care, around $40

The $0 premium is one of the biggest reasons people consider Medicare Advantage. However, a $0 plan premium does not mean you will have no health care costs. You may pay copays or coinsurance when you receive services. Those costs continue until you reach the plan’s maximum out-of-pocket limit.

The maximum out-of-pocket amount is an important part of comparing Medicare Advantage plans. It provides a yearly limit for covered Medicare services, but the limit varies by plan. A plan with a lower premium may have higher costs when you visit doctors, receive outpatient care, or need hospital services.

Network and prior authorization

Network: Network of doctors included

Prior auth: Prior authorization required

Medicare Advantage plans may require you to use doctors and hospitals in the plan’s network for routine care. Some plans may provide out-of-network benefits, but costs can be higher. Before enrolling, confirm that your preferred doctors, specialists, hospitals, and pharmacies participate in the plan.

You may also need prior authorization before the plan approves certain services, procedures, medications, or equipment. Prior authorization is not always a problem, but it is a factor to consider if you prefer fewer plan-level approval requirements.

Medicare Advantage works very similar to group coverage and Obamacare. You typically select a plan, use its network, follow its rules, and pay set copays or coinsurance for covered care.

Medicare Advantage estimated total monthly cost

Total monthly: $165/mo

Gold option

Critical illness, hospital and home health care added. Typically no rate increase.

Pick and choose your coverage.

This estimated $165 monthly total represents the selected Gold option with critical illness coverage, hospital coverage, and home health care added. Your Medicare Part B premium is separate. Actual costs vary based on your age, ZIP code, carrier, plan design, and selected benefits.

Option Two: Medicare Supplement

Medicare Supplement insurance, also called Medigap, works alongside Original Medicare. Instead of receiving your Medicare benefits through a Medicare Advantage plan, you keep Original Medicare and add a supplemental policy to help with certain Medicare-covered costs.

Medicare Supplement plans generally have higher monthly premiums than many Medicare Advantage plans. In exchange, they can provide broader access to doctors and more predictable costs for covered services.

Medicare Supplement benefits and costs

• Extended Basic/Plan G average cost $130, historical rate increases 15 to 20%
• Plan N average cost $100, historical rate increases 8 to 12%
• Separate drug plan package with critical illness included, around $55
• Separate dental, vision and hearing, around $60, Medicare does not cover it
• Home health care, around $40

Unlike Medicare Advantage, Medicare Supplement insurance does not usually include prescription drug coverage, dental, vision, or hearing benefits. These must be purchased separately when needed.

The separate drug plan package with critical illness included is estimated at around $55. Separate dental, vision and hearing coverage is around $60 because Medicare does not cover it. Home health care is estimated at around $40.

Network and prior authorization

Network: No network of doctors

Prior auth: No prior authorization

With Medicare Supplement coverage, you can generally visit any doctor or hospital that accepts Medicare. This can be especially important if you travel, spend part of the year in another state, or want to continue seeing providers outside a Medicare Advantage plan’s network.

Medicare Supplement plans also do not use a plan network in the same way Medicare Advantage plans do, and there is no prior authorization through the supplement policy. Original Medicare rules still apply, and your provider must accept Medicare for the coverage to work as expected.

Medicare Supplement estimated total monthly cost

Total monthly: $285/mo

Gold option

Extended Basic/Plan G plus the separate pieces. Rate increases over time.

Pick and choose your coverage.

This estimated $285 monthly total includes Extended Basic/Plan G plus the separate pieces described above. Your Medicare Part B premium is separate.

Medicare Supplement premiums can increase over time. The comparison includes historical rate increases of 15 to 20% for Extended Basic/Plan G and 8 to 12% for Plan N. These figures are historical estimates, not a guarantee of future rate changes.

Medicare Advantage vs Medicare Supplement: Which May Fit You?

There is no single Medicare plan that is best for everyone. Your preferred option may depend on how you use health care and how you prefer to pay for coverage.

Medicare Advantage may fit you if:

• You want a $0 premium most of the time.
• You are comfortable using a network of doctors.
• You want drug coverage included in the plan.
• You value dental, vision, hearing, and gym membership benefits.
• You prefer paying copays and coinsurance as you use services.
• You are comfortable with prior authorization requirements.
• You want to pick and choose additional coverage such as critical illness, hospital, and home health care.

Medicare Supplement may fit you if:

• You want no network of doctors.
• You prefer the freedom to see doctors who accept Medicare.
• You want no prior authorization through the supplement policy.
• You are comfortable paying a higher monthly premium.
• You want Extended Basic/Plan G or Plan N coverage.
• You are willing to purchase a separate drug plan.
• You understand that dental, vision, and hearing coverage is separate.
• You can plan for rate increases over time.

Questions to Ask Before You Choose

Before selecting Medicare Advantage or Medicare Supplement insurance, review more than the monthly premium. Ask:

1. Are my current doctors and preferred hospitals covered?
2. Are my prescriptions included, and what will they cost?
3. Does the plan require prior authorization?
4. What is the plan’s maximum out-of-pocket amount?
5. Will I need separate dental, vision, hearing, or drug coverage?
6. Do I travel often or spend extended time outside Minnesota?
7. Can my monthly premium increase over time?
8. What will my total monthly cost be after adding Medicare Part B?
9. 
   

You can also use Medicare’s official Plan Compare tool to review available plans.

For Minnesota-specific guidance, explore VitalShield’s resources on

Medicare insurance, Medicare in Minnesota, and Medicare Supplement plans in Minnesota.

Get Your Personalized Medicare Comparison

Medicare Advantage and Medicare Supplement can both be valuable options, but the best fit depends on your personal situation. A side-by-side review of your doctors, prescriptions, ZIP code, health needs, travel plans, and budget can help you compare the full picture.

VitalShield Insurance Services helps individuals and families review Medicare, health, life, and dental insurance options from leading carriers. Our certified agents provide personalized advice and help simplify the selection process.

Get Your Personalized Comparison

Both options are in addition to your Medicare Part B premium, which is typically $202.90 per month. Costs shown are averages and vary by age, ZIP code and carrier.