How does a Medicare Supplement plan differ from a Medicare Advantage plan?

A Medicare Supplement plan, often referred to as Medigap, is designed to work alongside Original Medicare (Part A and Part B) to help cover out-of-pocket costs such as copayments, coinsurance, and deductibles that Original Medicare does not fully pay. This means that while Medicare covers a significant portion of healthcare costs, the Supplement plan fills in gaps, making healthcare more affordable for beneficiaries.

In contrast, Medicare Advantage plans (Part C) are an alternative to Original Medicare. They provide all the benefits of Medicare and often include additional services like vision and dental coverage. However, a Medicare Advantage plan is not simply a supplementary plan; it essentially replaces Original Medicare with its own set of rules, networks, and coverage options, generally managed by private insurance companies.

This distinction highlights why the option indicating that a Medicare Supplement plan works alongside Original Medicare is a correct representation of how these plans operate. It underscores the collaborative role a Supplemental plan plays in conjunction with the existing Medicare coverage rather than replacing it.